Litecoin (LTC) Price Prediction: Will LTC Reclaim 2021 Highs?

Since hitting a local low of $64,  Litecoin [LTC] has been on an upward trajectory reaching a high of $98. In fact, over the past month, LTC has increased by 20.42% to trade at $89, as of this writing.

Litecoin [LTC] has surged by over 50% in the past two months, sparking optimism among traders. However, a closer examination of the price charts reveals a hidden pain point that could potentially hinder LTC’s further ascent.

A recent analysis by IntoTheBlock highlighted that over 60% of LTC holders are currently in profit. While this may sound like a positive statistic, it could lead to traders cashing out their gains, ultimately exerting downward pressure on the altcoin’s price.

The analysis further revealed that a large portion of these profitable holders bought LTC in 2021 at much higher price levels. As such, they might be eager to sell their holdings once they reach the breakeven point.

During the 2021 bull cycle, LTC surged to highs of $413 in May and $302 in November. In comparison, the altcoin is currently trading at around $89.

This shows that despite the recent gains, LTC is still trading approximately 78% below the 2021 peak. Hence, for these holders to breakeven, the altcoin has to 2.5X from current levels.

2021 LTC price action on Binance. Source: Binance

However, given the current market conditions and macroeconomic factors, such a scenario appears unlikely in the short term.

To put things into perspective, Litecoin began 2023 trading at $64. After surging past the $98 resistance level in early February, the altcoin encountered resistance at $105.

After failing to break above $105, LTC corrected slightly and consolidated between $90 and $95 for the next two weeks. Countering the bearish divergence on the MACD, the altcoin surged past the consolidation overhead resistance on 27 February.

LTC price 1 hour candles. Source: TradingView

After surging past overhead resistance, LTC appeared to be headed towards the $120 price level. However, the 2021 هولدر breakeven price acted as resistance and pushed LTC back down from the $115 price level.

Currently, LTC trades at $89 after rebounding from support at $85. However, the 2021 هولدر breakeven price could continue to act as resistance and keep LTC from surging further upwards.