Litecoin price primed for 20% upswing as LTC adoption takes off
- Litecoin price is hovering just above Monday’s high at $205, suggesting the start of a new uptrend.
- LHV Pank will allow its customers to trade LTC and other cryptocurrencies.
- A breakdown of the $172 support level will invalidate the bullish thesis for the altcoin.
Litecoin price looks ready to reverse its temporary downtrend as it bounces off a vital demand barrier. A potential spike in buying pressure could kick-start a rally, but LTC needs to surpass one crucial level.
Adoption takes a new road
Litecoin adoption has increased a lot in 2021 and the most recent addition is LHV Pank, an Estonian banking and financial services company. The institution announced on November 21 that it would allow its customers to invest in Litecoin and other cryptocurrencies. This development makes LHV the first Estonian bank to enable its customers to buy and hold crypto assets.
Bitcoin, Ethereum, Uniswap, Aave, Chainlink, Stellar Lumens, Polygon and Aave, are the other assets that Estonian citizens banking with LHV Pank can trade.
The first bank in Estonia, LHV, the countries largest domestic financial group and capital provider announces trading in #Litecoin and investing directly in #crypto assets!
— Litecoin (@litecoin) November 21, 2021
Learn more at: https://t.co/ZLblam6VSN #Estonia $LTC #Crypto pic.twitter.com/qAuBQxJcBZ
While the announcement is bullish, the official page for LHV Pank states,
For now, crypto assets acquired by clients by LHV cannot be used on platforms to pay for services or make transfers.
This development for LTC comes soon after the recent upgrade from Visa that will allow holders of LTC to spend it anywhere via the Litecoin Card. While most cryptocurrencies are localized to the cryptocurrency space, major assets like LTC and BTC are used for services, commodities, as a de-facto currency.
Litecoin is accepted anywhere VISA is.. the #Litecoin Card converts $LTC at the time of purchase. You can also connect the card with the @Litewallet_App #PaywithLitecoin #Hodl #SundayThoughtshttps://t.co/rOzz9zoXRD pic.twitter.com/AR4wXqCPg6
— Litecoin (@litecoin) November 14, 2021
Examples of such adoption include merchants like BitPay, Travala, and others accepting LTC. While this adds to the fundamentals of Litecoin, investors can breathe a sigh of relief as the technicals are presenting a bullish outlook.
Litecoin price eyes higher high
Litecoin price has dropped roughly 30% from its swing high at $295.86 on November 10. LTC is currently trading at $210 and hints that an upswing is around the corner. Investors should note that a dip below the 61.8% Fibonacci retracement level at $198 is likely before an upswing originates.
Regardless of the dip, market participants can expect LTC to make a run for the 50% retracement level at $217. A daily candlestick close above this barrier will confirm the start of an upswing. In this case, market participants can expect Litecoin price to embark on a liquidity run above $234. Beyond this, LTC bulls might extend this climb to $246, constituting a 20% ascent from the $205 level.
LTC/USD 9-hour chart
While the upswing narrative seems straightforward, things could delay if LTC dips below $198 and fails to recover. This move will indicate that Litecoin price is likely to eye for a retest of the 70.5% Fibonacci retracement level at $185, where it will give the bull rally another go.
However, a daily close below $172 will invalidate the bullish thesis and trigger a potential correction to the range low at $139.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
