LTC seems to have found some support on the chart just below the $300 level. The Litecoin price is setting up for a potential run to $339.
Litecoin is a first-generation Cryptocurrency and is similar in functionality to Bitcoin.
The coin was created by Charlie Lee, ex google engineer and a well-respected figure in the Crypto community. The project aimed to create a faster, cheaper alternative to Bitcoin, allowing for greater adoption.
Furthermore, functionality is not the only similarity. The Litecoin price has followed in the footsteps of its big brother this year.
From January the first through to its $413 high on May 10th, the coin had returned 239% to holders. Over the last six days, the price has retreated 24% and is currently hovering above the psychological $300 level, at $314.
The price has run into the support of an ascending trendline on the 2-hour chart at $298. For the moment, the trend is holding, and LTC appears to be putting in a bottom above the big figure.
Additionally, it is now above a descending trendline at $311, from the 12th of may high at $394.50.
As long as the Litecoin price stays above the descending trend line, I expect a rally to $339.
This is the level the price bounced to after the previous test of the line. If the price can convincingly clear $339, the next target is $360.
Nonetheless, if the trend line at $298 fails, clearly, there may be room on the downside. This would cancel the short term bullish outlook.
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