Litecoin is re-testing the psychological $50 level of resistance after rallying by 13.82% since the start of the week.
The market cap of Litecoin has subsequently risen from $2.6 billion to nearly $3 billion as it asserts itself as the seventh largest cryptocurrency.
It may take a couple of attempts before a breakout above $50 comes into fruition, but sentiment surrounding Litecoin remains bullish following the break above $40 on Monday.
Another potential target to the upside has emerged at $53.55 as it is in confluence with the daily 200 moving average, which has been a key point of support and resistance over Litecoin’s nine-year history.
However, during a time of relative chaos from an economic standpoint it’s worth pointing out that developments from the coronavirus pandemic may have a prolonged impact on cryptocurrencies.
If global markets have another sharp downturn as they did on 13th March, then digital assets will suffer again as traders liquidate to free up cash flow.
Levels of support remain at $40 and $27 although 2018’s low of $22.45 may also be tested depending on how severe the sell-off is.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It is a fork of Bitcoin, with the main difference being a smaller block generation time. The protocol also increased the maximum number of coins and implemented a different script-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
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