Litecoin seems to be following the trend of all other major cryptocurrencies as it continues to consolidate beneath the daily 200 moving average.
At the time of writing Litecoin is trading at $42.38 after having rallied by 11.97% from the $39.29 level of support on Thursday.
The market cap of Litecoin also rose significantly yesterday, reaching $2.75 billion after beginning the day at $2.5 billion, making it the seventh largest cryptocurrency in circulation.
While consolidating above a level of support is typically considered bullish, there is a number of key hurdles that Litecoin needs to break above before it is in a confirmed uptrend.
The first two stumbling blocks for Litecoin stand at $46.94 and $50, the former was a point of resistance on 8th April, as price subsequently tumbled following a swift rejection. The latter is more of a psychological level that has been relevant since 2017.
Breaking above key levels like $50 and $100 will be key for Litecoin moving forwards as it would indicate a clear shift in sentiment from last month when it dropped to as low as $25.
However, one crucial price point to break above is currently $52.74 as it is in confluence with the previously mentioned daily 200 moving average.
Trading above the 200MA would indicate a change in momentum on both lower and higher time frames, although bearish pressure is expected upon the test.
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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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