Litecoin Price Forecast – Symmetrical Triangle Pattern, Breakout Eyed!
Arslan Butt•Monday, May 3, 2021•2 min read
LTC/USD closed at 271.175 after placing a high of 271.175 and a low of 255.382. Litecoin ended its month with massive gains on Friday and continued its bullish streak for seven consecutive months. It reached an all-time high of above $300 level in April but ended the month near the $270 level. The recent surge in the cryptocurrency market driven by the increased popularity of digital assets helped LTC post gains in April and reach above the $300 level.
However, the cryptocurrency could not stay there for long as the sentiment around the crypto market changed due to increased pressure over the king of cryptos, Bitcoin. In the past few weeks, BITCOIN faced extreme pressure amid a combination of factors and reversed the market course to bearish. LTC/USD also followed that and the prices reached $270 level. On the other hand, on Friday, the cryptocurrency was high on board and posting gains on the back of positive news in the market. The Komodo (KMD) platform announced a plan to start using the Litecoin blockchain for cross-chain notarizations.
Komodo has been using the Bitcoin network to perform cross-chain notarizations as the BTC blockchain has a proven track record of being secure, decentralized, and has a high level of power. However, the cost of carrying out a 51% on the Bitcoin network is extremely high, which raised the need for changing the cross-chain notarization. As the world is adopting digital assets similar to the internet in the 90s, the Bitcoin network is becoming costlier and more congested. This resulted in the Komodo team deciding to explore ways of a sustainable future, with the Litecoin network being the automatic next choice. The Litecoin platform is cost-effective with cross-chain notarizations as it could save between 2.5 to 3 BTC per month. Litecoin also has a lower carbon footprint than Bitcoin, which will reduce the consumption of resources. It has about four times faster block times than Bitcoin. The hash rate of Litecoin is decentralized, which would make it challenging to coordinate a 51% attack. LTC remained on a positive note after this announcement from Komodo as the switch to Litecoin was near. Komodo platform has said that the switch will happen in June.
LTC/USD Daily Technical Levels
Support Resistance
270.942 279.670
265.123 282.579
262.214 288.398
Pivot Point: 273.851
The
LTC/USD pair is trading with a bullish bias at 279 level, forming a
symmetrical triangle pattern that’s keeping the pair in a consolidation. Overall, the pair is holding within a narrow trading range of 288 – 270 level; however, the violation of this level can extend buying trend until 315 and 330 level in coming weeks. While on the lower side, the support stays at the 265 level. Let’s consider taking a buy trade over 274 level today. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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