Litecoin, like other cryptocurrencies lost almost all growth for 2021 in May 19th
The LTC price fell 60%, recovering just above $200 on May 20th. Despite the big drop, the price of cryptocurrency is now above the support levels, which creates the prerequisites for further growth.
In the coming days, positions with a large leverage will be closed. This means that the pressure of buyers will increase. Restoring the value of cryptocurrency can lead to even more impressive highs.
In the long term, Litecoin is in the ascending channel, which has been formed since October 2020. The coin once tested its lower boundary in late autumn 2020. The upper boundary of the channel is a 265% increase in value.
In the short term, LTC needs to stay above the channel support line and the 200-day SMA at $190 for a couple of days.
Increased consumer demand will move the price of cryptocurrency closer to the middle line of the formed channel. Here the coin is waiting for a key resistance at the level of $300 and $500.
A drop below 200 SMA threatens the coin exit from the channel. In this case, the forecast is bearish. The LTC price may fall to a recent low of $145 or even lower.
The current price of cryptocurrency can be found on the Binance exchange. It is the world's largest crypto exchange with profitable trading offers and low commissions.
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