Alejandro ArriecheThe value of Litecoin has struggled to recover since the February-March sell-off, which dragged essentially all financial assets to their lowest levels in years as investors hoarded cash amid the uncertainty related to the virus situation.
Cryptocurrencies were not exempt from this risk-off move – despite the repeated discourse about how these assets should behave independently from traditional classes such as stocks and bonds – and Litecoin was among those that took a heavy blow, losing roughly 75 per cent of its value in a matter of weeks.
That said, a retail trading boom seen during lockdowns has helped in lifting the price of the crypto asset, as traders have found in cryptocurrencies a potential alternative to fiat currencies amid massive liquidity injections from central banks around the world that could result in the debasement of longstanding safe havens such as the US dollar or the Swiss franc.
Moreover, a potential uptick in inflation rates over the next few months or years as a result of this money-printing frenzy is also setting the stage for a jump in cryptocurrencies – as investors believe these digital assets will protect their money from losing its purchasing power.
However, optimistic Litecoin prediction that rests on the effective debasement of fiat currencies is still to prove trustworthy, as the price of the crypto token has failed to make a new high since its pre-pandemic peak of $84 per coin.
With that in mind, in case you are wondering what the Litecoin future price will be, the following LTC price prediction using technical analysis tools will attempt to determine potential levels that the cryptocurrency could reach over the next 12 months.
LTC outlook
The price of Litecoin has fallen roughly 87 per cent from its $371 all-time high seen in late 2017 during the crypto bubble and it hasn’t traded anywhere near those levels over the three years that followed the crash.
Moreover, the coin has been consistently posting lower highs, with the price failing to touch the same high in the years that follow, which ends up creating a bearish bias towards the coin, at least from a long-term perspective.
This is perhaps the most troubling and disappointing variable to take into account when drafting Litecoin projections as the bearish pressure seems to be putting lower and lower caps on the price.
However, this same bearish pressure could also be taken as a contrarian signal, as the price of LTC has consistently found support in the lower trend line shown in the chart – which has been progressively rising.
As a result, the price may end up breaking either above or below – it is impossible to tell from a symmetrical triangle formation such as one shown in the chart. However, the balance inclines in favour of a bullish breakout due to the current positive backdrop for cryptocurrencies – debasement, retail boom, usage of crypto as a payment method, blockchain implementation.
Litecoin price prediction 2021
Drafting a long-term LTC prediction for 2021 demands an analysis that incorporates its long-term trend, which in this case appears to be forming a symmetrical triangle similar to the one seen in the short-term price action.
Given the significant degree of consolidation that the stock has seen lately and taking into consideration the positive backdrop mentioned above, it would be plausible to see Litecoin breaking above the upper trend line of that triangle in the next few weeks or months, with a first target at $86 – LTC’s pre-pandemic high.
This level matches the 0.382 Fibonacci extension shown in the chart, which can be drafted by using the height of the triangle as guidance.
Now, the question remains, will Litecoin go up as high as the tip of that triangle? The truth is, nobody knows.
It would take a strong catalyst to push the price to those levels and at the moment there’s nothing that could justify a move of that sort, as the possibility that fiat currencies will be, to some extent, substituted by cryptocurrencies is a long stretch.
On the other hand, one variable may have the strength to push the price higher. That is the launch of cryptocurrencies in traditional exchanges and the approval of digital currencies as a regulated financial asset class by top-tier jurisdictions such as the United States.
That could drive significant volumes towards the most popular crypto assets such as Bitcoin, Litecoin, and Ethereum, which could in turn provide a sufficiently strong push towards some of the higher levels of that fibo extension.
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Is Litecoin a good investment?
Although Litecoin may be too risky to consider a worthy investment in the long run, there are merits to see Litecoin as a potentially rewarding short-term or long-term instrument to trade, especially if one uses volatility in its favour.
Given the consolidation process that this coin has been on lately, a break in any direction may be expected and the probability that such a break will be a bullish one is higher than the chances of a downward move due to the positive backdrop.
With that in mind, the currently depressed levels at which LTC is trading seems like an attractive entry point for those willing to hold on to the coin during the next six to 12 months with a potential Litecoin price prediction for 2021 of $87-$107, the 0.382 and 0.5 Fibonacci extension levels.
Some analysts also believe that, following the halving, the Litecoin price will manage to grow in the coming years, predicting a bright future with all the planned integrations and partnerships.
According to the optimistic Cryptoground.com’s LTC price forecast, Litecoin will reach $88.30 in one year, gaining almost 109 per cent. It is expected that the bullish trend will continue, with the LTC price trading at $347.8 by the end of 2024.
Will Litecoin go up in value? For a bullish break of that nature to be confirmed, strong trading volumes should be seen once the stock breaks above its recent $70 high, accompanied by a rising MACD and RSI.
Stay tuned to the latest cryptomarket news, which can define whether Litecoin will rise in the near future. Track the performance of the top-20 cryptocurrencies live and build your own Litecoin (LTC) price forecast to trade it with CFDs at Capital.com.
