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Why Litecoin Is The Most Undervalued Asset in Crypto

Litecoin momentum is potentially changing, network usage is skyrocketing, and the cryptocurrency’s halving is ahead.

Yet the asset remains drastically undervalued relative to Bitcoin, Ethereum, and other factors. Here is a closer look at why Litecoin could be the most undervalued asset in crypto.

LTC Vs BTC Vs ETH Compared

Litecoin was once a top ten or higher cryptocurrency that has since fallen from that lofty pedestal. A nine-month-long up-only bull run and more than 10,000% ROI left the coin ranging for going on its fifth full year.

Unlike other top coins like Bitcoin and Ethereum, LTC never made dramatic new all-time highs in 2021. On some exchanges, the record high is still set for 2017. After the 2017 bull market peak, Litecoin has lagged behind the two largest coins by market cap.

But this is common in the final stages of a bull market, after which Litecoin wildly outperforms both BTC and ETH in a flash. That sort of situation could return, according to the charts below, starting with the below comparison of LTC versus Bitcoin and Ether.

litecoin LTCUSD_2023-05-16_07-26-44

Crypto Market Moment Ready To Change

Another sign that LTC is due to outperform the market can be found in the one-month LMACD crossing bullish. The signal is at least a two months ahead of Bitcoin and Ether and suggests a larger move in Litecoin first.

According to Investopedia, momentum “refers to the inertia of a price trend to continue either rising or falling for a particular length of time.” The LMACD is a momentum measuring tool, and it could be indicating that Litecoin’s inertia just made a major swing in the positive direction.

litecoin LTCUSD_2023-05-16_07-31-23

Litecoin Elliott Wave And The Final Advance

Litecoin technicals, according to Elliott Wave Principle, could also point to much higher prices. The current wave count and Fibonacci retracement levels are characteristic of an expanding diagonal pattern.

These patterns appear at the beginning or the end of a motive wave. Considering the larger wave count, this would suggest an ending expanding diagonal and perhaps the last major rally in Litecoin in some time.

LTCUSD_2023-05-16_07-37-24

LTC Fundamentals Support Soaring Higher

Finally, LTC transactions are currently skyrocketing. From a fundamental perspective, this is as bullish as it gets for any cryptocurrency. Litecoin is benefiting from an explosion of ordinals on the LTC-20 standard, congestion on Bitcoin and Ethereum, and more.

LTCUSD_2023-05-16_08-05-19

Essentially, the Litecoin ecosystem is booming again. When network usage skyrockets, LTCUSD spikes in price. We also have yet to mention Litecoin’s halving, which is less than 80 days away.

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Only 1,032 Addresses Control Over 60% Of All Litecoin (LTC) In Circulation

1,032 addresses control over 51.2 million Litecoin (LTC) in circulation, on-chain data from BitInfoCharts on May 15.

Litecoin Under Siege?

Records from the “Top 100 Litecoin Rich List” show that 7,355,585 LTC in circulation worth $639,814,097 are controlled by 8.78% of all registered addresses. At the same time, 26,526,499 LTC worth over $2.3 billion is managed by 111 addresses, while 17,993,930 LTC exceeding $1.5 billion are held by 918 addresses.

As of May 15, there were 72,924,127 LTC in circulation. So this concentration alone means over 60% of all LTC in circulation are controlled by 1,032 addresses. Furthermore, the network will only dispense 84,000 LTC to miners as block rewards. 

Litecoin is a proof-of-work network like Bitcoin. It relies on a community of special nodes called miners to validate on-chain transactions and add them to the longest chain. For their participation, the lucky miner is rewarded 12.5 LTC per block every 2.5 minutes.

Litecoin Price On May 15| Source: LTCUSDT On Binance, TradingView

Based on the above statistics, what’s notable is that the $2.3 billion of LTC at spot rates owned by 111 addresses represents the biggest concentration compared to any other range by address count.

To illustrate, 794,934 addresses holding between 0.01 and 0.1 LTC cumulatively own 29,508 LTC. With 794,934 addresses in this range, they are the highest number of LTC owners by wallet address count. 

However, considering their total holdings, these addresses are a minority since whales currently hold over 60% of the total circulating supply. Specifically, there are three whales with over 2 million LTC as of writing on May 15.

The largest LTC whale holds 2,504,667 LTC worth over $217 million. This address is active and constantly accumulates. Of note, the largest LTC whales began accumulating within the last five years from 2018. 

According to on-chain data by BitInfoCharts, the last time this address deposited LTC was on May 10, 2023. Meanwhile, the last withdrawal was in early January 2023.

For instance, the second largest LTC whale, with over 2.47 million coins, started depositing coins in mid-June 2022. He withdrew a portion of LTC on February 10, 2023.

Based on the frequency of deposits and withdrawals, it is also highly likely that these addresses don’t belong to centralized crypto exchanges like Binance or Coinbase.

Will LTC Rally Ahead of Halving?

Crypto whales controlling a disproportionately large amount of coins can manipulate prices and influence trends. Still, whether this will change ahead of the Litecoin halving event is yet to be seen. The Litecoin network will slash miner rewards by half to 6.25 LTC in less than three months.

Based on historical performances, halving events, even in Litecoin, tend to support price increases. Therefore, ahead of this event estimated to be in early August 2023, LTC prices might recover as the coin becomes scarcer.

LTC prices are up 15% from May 2023 lows, changing hands at $86, according to TradingView data.

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Litecoin (LTC) Records Spike In Active Addresses Following Launch of LTC-20: Santiment

Popular Bitcoin hard fork and one of the earliest cryptocurrencies, Litecoin (LTC), have recorded some interesting network activity in recent times. According to data from the on-chain analytics platform, Santiment, the number of daily active network addresses on Litecoin has increased by over 400,000 since the start of May. 

However, Litecoin has only experienced a slight increase in its transaction volume during the same period, which is unusual considering the significant rise in its daily active addresses. Analyzing this network activity, Santiment released a detailed report on the factors behind such development.

Litecoin

LTC-20 Standard Drives Rise In Litecoin Micro Addresses  

According to Santiment, the majority of new active addresses on Litecoin are the most miniature set of wallets on the network holding between 0-0.001 LTC. This explains the little increase in trading volume despite the rising number of daily addresses. 

Behind this gain in micro wallets, Santiment postulates the recent introduction of the LTC-20 token standard to be the primary driving force. This is based on chart data which shows that this exciting rise in the 0-0.001 LTC wallets began after the launch of the LTC-20 standard on May 2. 

Litecoin

According to its official Gitbook page, LTC-20 is referred to as an experimental standard for non-fungible tokens (NFTs). 

While providing an introduction to this blockchain product, the page author stated; 

“…this is an extremely dynamic experiment, and I strongly discourage any financial decisions to be made on the basis of its design. I do, however, encourage the Litecoin community to tinker with standard designs and optimizations until a general consensus on best practices is met.” 

However,  while LTC-20 is in its testing phase, it has been the rave of the Litecoin community in the last two weeks. This is mainly because it is based on the Bitcoin BRC-20 standard, allowing users to create “worthless” fungible tokens using the ordinal theory. 

The BRC-20 token standard has proven to be quite successful since its launch two months ago, accumulating a market cap of over $660 million from then to date. That said, both the BRC-20 and LTC-20 tokens are NFT-like assets, albeit fungible, which inscribe data such as text, images and video on a blockchain. 

LTC-20 Yet To Affect LTC’s Price

Although LTC-20 has brought about an increase in the daily active address as well as transaction counts on the Litecoin network, it is yet to elicit a similar positive effect on the price of LTC.

Based on data from Coingecko, Litecoin has declined by 8.4% and 10.7% in the last seven and 14 days, respectively. The token has gained by 14.8% on its year-to-date value but is down by a staggering 80.43% from its all-time high value of $410.26.

At the time of writing, LTC is trading at $80.51, having gone up by 1.8% in the last 24 hours. The token’s daily trading volume has also gained by 7.11% to attain a value of $417.43 million.

That said, Litecoin remains the 14th biggest cryptocurrency in the world, with a total market cap of $5.88 billion. 

Litecoin

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Litecoin Price Prediction: LTC Recovery at Clear Risk on Two Factors

Litecoin price is attempting a recovery wave from $75 against the US Dollar. LTC could struggle to clear $82 or $85 and might start another decline.

  • Litecoin is slowly moving higher and correcting toward $82 against the US Dollar.
  • The price is now trading above $85 and the 100 simple moving average (4 hours).
  • There was a break below a key rising channel with support near $86 on the 4-hour chart of the LTC/USD pair (data feed from Kraken).
  • The price could face a strong resistance near $82 and $85 levels.

Litecoin Price Remains In Downtrend

This past week, Litecoin’s price struggled near the $90 resistance against the US Dollar. LTC price started a fresh decline and traded below the $85 support, similar to Bitcoin and Ethereum.

Besides, there was a break below a key rising channel with support near $86 on the 4-hour chart of the LTC/USD pair. The pair traded below the $80 support level. A low is formed near $75.26 and the price is now attempting a recovery wave.

LTC is now trading above $85 and the 100 simple moving average (4 hours). The price managed to climb above the 23.6% Fib retracement level of the downward move from the $89.13 swing high to the $75.26 low.

On the upside, immediate resistance is near the $82 zone. It is close to the 50% Fib retracement level of the downward move from the $89.13 swing high to the $75.26 low. The next major resistance is near the $85 level. If there is a clear break above the $85 resistance, the price could start another strong increase.

Litecoin Price Prediction

Source: LTCUSD on TradingView.com

In the stated case, the price is likely to continue higher toward the $90 and $92 levels. Any more gains might send LTC’s price toward the $100 resistance zone.

Fresh Decline in LTC?

If Litecoin price fails to clear the $82 resistance level, there could be a fresh decline. Initial support on the downside is near the $78 level.

The next major support is forming near the $75 level, below which there is a risk of a move toward the $72 support. Any further losses may perhaps send the price toward the $65 support.

Technical indicators:

4-hour MACD – The MACD is now gaining pace in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI for LTC/USD is below the 50 level.

Major Support Levels – $78.00 followed by $75.00.

Major Resistance Levels – $82.00 and $85.00.

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Litecoin (LTC) Falls Under $80, Is It Time To Buy Now?

Litecoin has continued to decline and has now slipped under the $80 level, but if a metric is anything to go by, the coin may be near the bottom.

Litecoin Is Now In The MVRV Opportunity Zone

According to data from the on-chain analytics firm Santiment, some altcoins, including Litecoin, are showing underbought signals after the recent price decline. The “MVRV” (Market Value to Realized Value) is an indicator that measures the ratio between the market cap of a given asset and its realized cap.

The realized cap here refers to a sort of “true” value model that says the actual value of any token in the circulating supply is the price at which it was last moved on the blockchain, and not whatever the current price of the asset is.

The MVRV compares the market cap (that is, the current price) with this realized cap to estimate whether the cryptocurrency is undervalued or overvalued at the moment.

When the value of this indicator rises above 1, it means the given coin may be becoming overpriced. On the other hand, a decline below this line implies underbought conditions for the asset.

Santiment has defined its own “opportunity” and “danger” zones for the MVRV on the respective sides of the 1 mark, after entering which the asset attains a higher probability of bottoming/topping out.

Now, here is a chart that shows the divergence of the MVRV indicator from these zones for various cryptocurrencies in the sector:

Litecoin MVRV

The way that Santiment has defined the divergence (that is, the distance from the zones) has made it so that a buying signal occurs when an asset’s MVRV divergence crosses 1, while a selling signal takes place below -1 (this orientation is the opposite of what’s usually the case in the MVRV ratio; this flip is done with the intention to make the metric more intuitive).

From the chart, it’s visible that most of the assets in the market are in the positive region currently, suggesting that they are close to being underbought. A few of these, like Litecoin, have outright entered into the opportunity zone, meaning that this may be a good time to buy the asset.

Litecoin has entered into this zone as its value has slipped below the $80 mark for the first time since March and has put the average investor into a state of loss.

Historically, the more investors have been in a state of loss, the closer the price of the cryptocurrency has come to a bottom. This is the reason why the aforementioned opportunity zone has provided ideal points for buying into the asset.

In the case of Litecoin, a bullish narrative in the form of its halving, an event where its mining block rewards will be cut in half, is also right around the corner now, so there is an increased probability that the price could bottom out and rebound soon. It’s uncertain, however, whether the bottom is already here or if there is still some drawdown to go.

LTC Price

At the time of writing, Litecoin is trading around $79, down 1% in the last week.

Litecoin Price Chart

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How Soon Will Litecoin Breach This Psychological Resistance Level?

In recent trading sessions, the price of Litecoin has remained stagnant below a significant resistance level while Bitcoin has experienced consistent fluctuations. Although Litecoin showed a slight increase of 2% in the last 24 hours, it lost 1% over the week, indicating consolidation.

The altcoin’s technical outlook suggests a potential bearish takeover, as demand and accumulation for the altcoin have both declined. The crucial overhead resistance level of Litecoin has been a barrier that the coin has failed to surpass previously. In the event of another rejection over the coming trading sessions, bears could successfully take over.

As Bitcoin approaches the $30,000 mark, major altcoins are following a similar price trend. If BTC successfully crosses this resistance level, Litecoin could experience a rally. However, the market capitalization of LTC has decreased in the last 24 hours, indicating a decline in buying strength.

Litecoin Price Analysis: One-Day Chart

Litecoin

At the time of writing, LTC was trading at $89.58, and the overhead resistance level was at $90, which the coin has attempted to break through over the past few weeks. If LTC manages to surpass this level, it could potentially trade near the $100 mark.

However, for a recovery on the chart to occur, selling pressure needs to decrease. On the flip side, if LTC falls from the $89 mark, it could reach $88. Failing to stay above that level could drag the price down to $84. The last trading session showed a red volume of LTC traded, indicating that sellers were dominating the market.

Technical Analysis

Litecoin

Following the formation of a tall bearish engulfing candlestick, the price of LTC has been steadily decreasing, and demand has also diminished. The Relative Strength Index (RSI) remains below the 50-mark, indicating that there is more selling pressure than buying strength.

Additionally, LTC has fallen below the 20-Simple Moving Average line, indicating that sellers are driving the price momentum. However, the price has moved above the 50-SMA line (yellow), suggesting that LTC might attempt to recover over the next trading session.

Litecoin

In line with other indicators, LTC has shown sell signals associated with negative price action. The Moving Average Convergence Divergence (MACD), which indicates price momentum and reversals, has continued to form red histograms, signaling sellers to the table.

The Directional Movement Index has also been negative, with the +DI line (blue) below the -DI line (orange). Furthermore, the Average Directional Index has fallen below the 20-mark, indicating that the current price trend lacks strength. However, with an increase in demand and broader market strength, LTC may be able to break through its overhead resistance level in the coming trading sessions.

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Litecoin (LTC) Displays Consolidation – Can We Expect A Reversal Soon?

The Litecoin price has shown considerable recovery ever since it reached its bottom in December 2022. LTC secured almost 50% appreciation in January this year. Currently, however, the altcoin has witnessed a price pullback and is consolidating on its daily chart.

Over the last 24 hours, the Litecoin price moved down by 0.3%, which signified a range-bound movement. The altcoin also lost close to 3% of its market value. The technical outlook of Litecoin pointed towards bullish momentum as demand for the altcoin remained high on the daily chart.

Accumulation also reflected the same. Price noted a decline as LTC receded from the overbought zone. Buyers still have the upper hand on the chart.

A continued fall in accumulation will cause bears to secure Litecoin’s price action. That momentum would continue for the upcoming week, causing LTC to fall below its nearest support level. At the time of writing, LTC was trading 78% below its all-time high set in 2021.

Litecoin Price Analysis: One-Day Chart

Litecoin

LTC was trading at $88.11 at the time of writing. The coin has pierced through several resistance lines over the past several weeks but has failed to hold on to the momentum. LTC met with two rigid resistance levels before it started to move south again.

The two important resistance lines for the coin stood at $90 and $92. Immediate resistance stood at $90. If demand for the altcoin remains steady, then LTC might attempt to breach the $90 price mark.

On the flipside, the nearest support line for the Litecoin price stood at $86, and a continued price correction will force LTC to fall below the $86 price mark and settle at $82. The amount of LTC traded in the last session was red, indicating a fall in buyers.

Technical Analysis

Litecoin

The altcoin has been hovering in the overbought region for several weeks now, and at the moment there is a slight fall in demand for Litecoin. The Relative Strength Index stood a little below the 60-mark after it noted a recent downtick indicating that demand was shrinking.

A reading close to the 60-mark, however, signifies that buyers outnumbered sellers. In accordance with that, LTC price shot past the 20-Simple Moving Average (SMA) line as buyers were driving the price momentum in the market.

The coin was also above the 50-SMA (yellow) and 200-SMA (green) lines, indicating increased bullishness.

Litecoin

Concerning the fall in buying pressure, the LTC chart displayed a sell signal on the one-day chart. The Moving Average Convergence Divergence (MACD), which depicts market momentum, underwent a bearish crossover and formed red signal bars tied to sell signals.

This could also imply that the price will fall in the coming trading sessions. The Parabolic SAR, the indicator that reads the trend and change in price momentum, was still positive. The dotted lines were below the candlesticks, suggesting that the LTC price was still positive.

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Litecoin Whale Transactions Set New 2023 High, Bullish Signal?

On-chain data shows Litecoin whale transactions have jumped to new highs for 2023 recently. Here’s how this may impact the crypto’s price.

Litecoin Transactions Valued Higher Than $1 Million Have Surged

According to data from the on-chain analytics firm Santiment, the last two spikes led to significant rises in the price. The relevant indicator here is the “whale transaction count,” which measures the total number of Litecoin transactions taking place on the blockchain that involve coins worth at least $1 million.

When the value of this metric is high, it means there are a large number of whale transactions happening on the network right now. Such a trend suggests these humongous holders are actively trading currently.

As the volume of coins involved in transfers like these is very sizeable, a high amount of whale transactions can sometimes cause noticeable effects on the market. Thus, whenever the indicator’s value is high, LTC is likely to see more volatility than usual.

Now, here is a chart that shows the trend in the Litecoin whale transaction counts over the last few months:

Litecoin Whale Transactions

As displayed in the above graph, the Litecoin whale transaction count has recently spiked and hit the highest values observed since December 28. This would suggest that whales have become active again.

In the chart, Santiment has also marked the trends that the price of LTC followed the last couple of times this cohort showed elevated activity. It looks like the most recent instance was last month when LTC’s price was observing some high volatility.

Following these large number of whale transactions, Litecoin soon formed a local bottom and went on to rally around 33%. Another instance of this trend was during the collapse of the crypto exchange FTX, where once again high values of the metric accompanied significant volatility in the value of LTC. After this instance as well, the crypto enjoyed some sharp uptrend as the price rose to 37% over the next few weeks.

Since the Litecoin whales are active right now, the crypto could soon witness similarly high volatility. Though, which way this volatility may ultimately take the coin’s price is uncertain, as while these whales could be buying right now (which would be bullish), they could just as well be selling with these transactions (naturally a bearish factor).

However, if the last two occurrences of this pattern are anything to go by, Litecoin might just go on to see runs similar to those that followed these previous instances.

In some other news, the LTC mining hashrate (a measure of the total amount of computing power connected by the miners to the network) hit a new all-time high earlier today, which may also prove to be constructive for the price.

LTC Price

At the time of writing, Litecoin is trading around $89, up 11% in the last week.

Litecoin Price Chart

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Shiba Inu Declines 6%, Gets Flipped By Litecoin In Market Cap Again

Shiba Inu has once again been flipped by Litecoin in terms of market cap as the meme coin has recorded losses of 6% in the past 24 hours.

Shiba Inu Is Down More Than 6% Today

The year 2023 so far has overall been a pleasant time for SHIB holders as the coin is up around 40% year-to-date. But in the past day, the market hasn’t been so kind on the meme coin as its price has observed some significant decline.

At the time of writing, Shiba Inu is trading around $0.00001132, down 6% in the last 24 hours. Here is a chart that shows the trend in the price of the asset over the past month:

Bitcoin Price Chart

As can be seen in the above graph, Shiba Inu caught an upwards momentum in the first week of this month and continued to rapidly rise until forming a local top above the $0.00001270 level around a week ago. In the days that followed, however, the coin mostly displayed a sideways movement, until today came around and the asset plunged.

Over the last seven days, SHIB is now down around over 8%. For comparison, rival coin Dogecoin has only seen a decline of less than 2% in this period, while Bitcoin has observed decent profits of almost 7%.

One question arises here: why did Shiba Inu see such a drop? According to crypto whale tracker service WhaleStats, the DOGE-cousin coin has been the most traded token among the top 100 Ethereum whales today:

While high trading activity from whales can sometimes have a bullish effect on the price, as it may be a sign of accumulation from them, today’s movements from this cohort may actually have been done with the purpose of selling instead, which would provide an explanation behind the decline in the crypto’s price.

Nonetheless, the 500 largest ETH whales were still holding onto more than $600 million worth of SHIB as of yesterday, so even with some short-term selling today, this cohort might have some large long-term positions still set up.

Litecoin Has Flipped SHIB In Market Cap Again

Litecoin and Shiba Inu have been fierce rivals on the list of the top cryptocurrencies by market cap in recent weeks, with both coins getting a chance to take the lead at a few different points.

With SHIB’s most recent drawdown, LTC has once more overtaken the meme coin as its decline hasn’t been as sharp. The below table shows where the two coins stand in the wider crypto sector right now.

Shiba Inu Vs Litecoin Market Cap

From the table, it’s visible that Shiba Inu has now dropped to being the 14th largest crypto in terms of market cap, while Litecoin has moved up to the 13th position.

The coin just below SHIB is the stablecoin Dai, and it’s not too far off from the meme coin’s market cap. This means that if SHIB continues to decline, it may quickly fall down to the 15th spot.

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Is Litecoin (LTC) Expecting A Pullback Before Soaring Again?

The Litecoin price has shown bullish sentiment over the past week once it bounced off the $81 resistance zone. Over the last 24 hours, the altcoin jumped by 2%, and in the past week, the LTC price gained close to 6%.

As Bitcoin continues to trot upwards and is now eyeing the $23,000 price mark, other altcoins have reflected the same price sentiments. The technical outlook of the Litecoin price has depicted that accumulation shot past the overbought region just when Litecoin breached the $81 price region.

Demand for the coin remained steady between the $81 and $88 price levels, respectively. As Litecoin traveled above the $88 price zone, the coin started to display a price correction. Going by the indicators, Litecoin continues to remain heavily bullish on its chart, with another chance of a price retracement.

Bullish momentum has gained strength since it moved past the $86 price mark, which is why a move to the $90 mark was swift and easy for Litecoin. Historically, the $93 resistance mark has acted as a pullback region for the coin. LTC might reach the $93 level over the next trading session if Bitcoin continues to surge.

Litecoin Price Analysis: One-Day Chart

Litecoin

LTC was trading at $91 at the time of this writing. Over the past couple of weeks, Litecoin has pierced through several resistance levels. The coin faced stiff resistance at $81 and has been rallying since crossing that level.

Overhead resistance for the coin stood at $93; this will act as a crucial price mark because LTC can experience a pullback before it tries to breach the $106 resistance mark.

On the other hand, if Litecoin fails to remain above the $88 support line, it would lead to sellers exceeding buyers, causing the altcoin to fall to $80 and then $71. The amount of LTC traded in the last session was red, which signified that there was a fall in the number of buyers.

Technical Analysis

Litecoin

LTC hovered around the overvalued zone, which indicated that there would be another price correction before it started to trade upwards again. The Relative Strength Index (RSI) stood at the 70 mark, which indicated that the asset was overbought.

A fall from the overvalued zone can drag the price of the asset below $88. Litecoin continued to depict extreme bullishness as the price was above the 20-Simple Moving Average line.

This meant that buyers were driving the price momentum in the market. The coin was also above the 50-SMA and 200-SMA lines. However, the 50-SMA was above the 20-SMA, which is a sign of impending bearishness and indicates a price pullback.

Litecoin

Buy signals for the asset started to show a decline, which meant that buyers might start to exit the market over the next few trading sessions.

The Moving Average Convergence Divergence (MACD) indicates price momentum and reversal; it displayed receding green signal bars, which meant incoming bearish price action.

Bollinger Bands indicate price fluctuation and volatility; the bands were far apart, which implied forthcoming price instability.

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Litecoin Price Could Rally 285% Pre-Halving Based On Historical Data

While the Bitcoin halving is not expected until March 13, 2024, according to Coinwarz data, Litecoin investors can already look forward to the traditionally bullish event as soon as this year. According to NiceHash’s estimate, the Litecoin halving will take place in 189 days, on July 19, 2023.

The approaching halving has prompted analyst Rekt Capital to examine Litecoin’s historical price trends before and after the halving in order to provide a prediction for the coming months.

285% Litecoin Rally In The Cards?

Rekt Capital notes that LTC tends to rally quite a lot before halving. Before halving 1, the price bottomed in 122 days and rose +820% afterward. Before halving 2, LTC bottomed in 243 days and rallied by 550%.

After both halvings, however, the price gains were even stronger. As the chart below from Rekt Capital shows, Litecoin is up +14,200% after the first halving, and after the second halving, it was “still” 1,574%. From this, the analyst derives the historical tendency that LTC tends to rally stronger after the halving than before.

Litecoin halving analysis

However, this does not mean that investing before the halving is not historically lucrative if you find the right time to place a sell order. According to the analyst, it can be seen from historical data that LTC sees a strong rally prior to the halving before the price drops sharply immediately.

The Litecoin price declined by -73% in the first 578 days after halving. The second halving led the price to drop as much as -83% before it found its bottom after 458 days. “For that reason it’s important to understand when an LTC pre-halving rally tends to top,” the analyst says.

As the chart below shows, LTC peaked 31 days before the event the first time and 61 days before the second occasion. Provided this trend continues, the LTC rally could stop as early as 92 days pre-halving – which would be in May 2023, according to Rekt Capital.

Litecoin price pre-halving

However, the rally could also end as early as April if the days double. It is therefore also interesting to scrutinize how long the rallies lasted in terms of time. The first LTC pre-halving rally lasted for just 90 days, while the second provided a good 180 days of excitement among investors. Therefore, the analyst concludes:

It looks like $LTC pre-halving rallies may be lengthening in time. If this upcoming LTC Pre-Halving rally lasts twice as long as the previous PH rally, then this rally will last ~365 days. Which finds confluence with a May 2023 top.

In terms of how much the LTC price could rise in the months leading up to halving, the analyst believes that the rally could propel the price as high as 285% from its bottom. Such a rally would mean that LTC has already captured certain pre-halving gains and could push up to the $115 zone.

This is also the point where the pre-halving 2019 rally peaked. LTC also briefly held support at this level after its 2021 bull market high to form the macro downtrend.

Litecoin halving rally

What Happens After The Halving?

Post-halving, LTC could face a strong retracement based on historical trends before an accumulation phase begins. The lows in both cases were higher lows compared to the pre-halving low. This could mean that LTC will fall between 72% and 77%.

The key is to “watch for deep post-halving retrace followed by long consolidation in an approx 70%-wide range,” the analyst explained. The breakout from the accumulation phase could occur after at least 400 days post-halving in July 2023, according to the (still short) history. In conclusion, Rekt Capital says:

This would coincide with a July 2024 LTC breakout. This would make sense as this #LTC breakout would occur after the 2024 Bitcoin Halving: It would also tie in with BTC’s general trend reversal which occurs in a typical Candle 4 in the four year cycle.

At press time, the LTC price was up 1.5% in the last 24 hours, trading at $82.43.

LTC USD

Featured image from Michael Fortsch / Unsplash, Chart from TradingView.com

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Ol’ Reliable Litecoin Up By 7% As LTC Flexes Muscles For 2023

Known to be one of the oldest cryptocurrencies in the world, Litecoin (LTC) has been making headlines as it reported record high transaction numbers.

According to the altcoin’s official Twitter account, it has serviced 39 million transactions as of December 29. 

Add on to this the accompanying news that it has also hit second place in the unique addresses metric which grew to 52 million. These very bullish developments led to the token pumping 7% in the weekly timescale, according to Coingecko data. 

2022 Leaving Marks – Will 2023 Be A Healing Year?

The current developments are certainly bullish, but this didn’t come without a cost. Like the broader crypto market, LTC’s value has definitely suffered. According to CoinGecko, the altcoin dropped in value by 50.4% on the yearly timescale. 

However, the new year seems to bring a renewed sentiment for LTC. A Reddit post regarding the altcoin’s 139,000,000th transaction quickly summarizes the sentiment surrounding the old altcoin; bullish and very appreciative of what the coin brings to the table. 

Litecoin, compared to smart contract providers on Ethereum, is commonly used as a payment method on Bitpay, the oldest cryptocurrency processor in the market. 

Between August 2021 and November 2022, payments using LTC increased by 109%, from 3,478 to 24,207. Transaction share of the altcoin on the payment platform is at 27%, almost trumping the other altcoins available on the platform. 

Bitpay and the community cited multiple reasons as to why adoption of the coin as a payment method grew but one metric stands above all: runtime. 

Nearly 100% Runtime For Litecoin Since Inception

LTC has overwhelming advantage in the runtime department compared to other altcoins. This certainly attracted investors and traders on the trust issue, the most important social metric a cryptocurrency can have. 

According to Jameson Lopp, CTO and Co-Founder of Casa HODL, LTC’s runtime in the past 10 years has been near 100%. Quite a feat for an altcoin released 11 years ago.

Litecoin

With adoption increasing and a new bullish sentiment formed on LTC, the coin is expected to have a reinvigorated price in the coming months. 

With LTC’s halving coming this year, we should see the altcoin’s price increase in the next coming months as well.

Short-term, analysts think that LTC will break towards $100. But LTC faces significant resistance at $76.48 and $77.98 price resistance levels. If the bullish sentiment and the current steady momentum continues, we’ll see LTC in that price level in no time.

-Featured image Fool.com

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Litecoin Whale Withdraws $32M In LTC From Binance, Good Sign For Rally?

Data shows a Litecoin whale has withdrawn $32 million in LTC from Binance, a sign that could be positive for the latest rally.

Litecoin Whale Takes Out $32M In LTC From Binance

As per data from the crypto transaction tracker service Whale Alert, a massive LTC transfer has taken place during the past day. In total, the transaction involved the movement of 425,660 LTC on the blockchain, worth around $32.1 million at the time of the transfer.

Related Reading: Billion-Dollar Hedge Fund Is Betting Against Bitcoin And Grayscale, Not Just USDT

Usually, such large transfers are a sign of activity from the whales, and due to the sheer scale of coins typically involved in them, the movements can sometimes have visible impacts on the price of Litecoin.

However, which way the price will respond to a transfer depends on the intent behind it. Here are a few additional details regarding the latest whale transaction that may shed some light on its purpose:

Litecoin Whale

As can be seen above, this Litecoin transaction was sent from a wallet attached to the crypto exchange Binance, and its destination was an unknown wallet. An unknown address is any address not affiliated with a known centralized platform and is thus likely to belong to a personal wallet.

Transfers of this nature, where coins move from exchanges to personal wallets, are called exchange outflows, and since holders usually withdraw from these platforms for accumulation purposes, outflows can have a bullish effect on the price.

Here, the exchange outflow was done by a whale, so it may mean that this humongous investor is planning to hold onto their Litecoin for an extended period of time. In the few days since the new year has started, LTC has been rallying up with the coin already reclaiming $75, so the whale not selling here to take advantage of this profitable opportunity and instead opting to accumulate suggests conviction from the investor that there is more to come for LTC.

There has also been another bullish signal for Litecoin recently, and it’s that the monthly LTC transactions on BitPay, the largest crypto payments processor, have gone up by 109% over the past year. This means that the network has observed some sharp growth in terms of adoption, a sign that should be constructive for the price in the long term.

LTC Price

At the time of writing, Litecoin is trading around $75, up 8% in the last week.

Litecoin Price Chart

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Litecoin Surges 7% In Strong 2023 Start, Jumps To 12th On Market Cap List

Litecoin has kicked off 2023 to a bright start as the crypto has surged 7% in the last 24 hours and has climbed to 12th on the market cap list.

Litecoin Starts 2023 On A Positive Note

2022 was a terrible year for the entire cryptocurrency sector as the long bear market resulted in losses of more than 50% for most of the coins. Litecoin was no exception; the asset ended the year with a drawdown of about 53%.

This year, however, may very well turn out to be different for LTC as the coin seems to have observed a strong start so far. At the time of writing, Litecoin is trading around $75, up 7% in the last 24 hours. The below chart displays the recent trend in the crypto’s price.

Litecoin Price CHart

The reason why this year could be better for LTC investors is that the next halving is set to take place this year. A “halving” is a periodic event where the block rewards of miners are permanently cut in half, meaning that the supply production of the coin itself is halved.

Related Reading: Most Public Crypto Firms Underperformed Bitcoin In 2022, Miners Hit Worst

Since supply being constrained like this makes the asset scarcer, such an event can have a bullish effect on the price. Therefore, Litecoin holders have been hoping that a rally would build up soon, ahead of the halving scheduled for this August.

As the graph shows, Litecoin has certainly already made a great start to the year, observing sharper upwards momentum than any other top coin. Though, currently, it’s unclear whether this would be the push that leads the coin to a proper halving rally, or if it’s another temporary rise before the real rally starts.

Despite LTC’s poor performance during 2022, there were still some positive takeaways for the coin. For example, the network processed over 39 million transactions in the year, a new record.

Also, the chain added 52 million new addresses in 2022, the second highest out of all the cryptocurrencies.

These achievements show that Litecoin is still very popular among users who want a reliable network for making cheap transactions, and continues to see more adoption.

Related Reading: Ethereum Finishes 2022 With ATH Correlation To Bitcoin, Despite The Merge

LTC Is Now The 12th Largest Crypto In The Sector

The recent amazing growth in Litecoin has meant that its standing on the top crypto by market cap list has improved. Here is a table that shows where LTC ranks among its peers now:

Litecoin Market Cap

As shown above, Litecoin has now overtaken Polkadot (DOT) to become the 12th largest coin in the market. Also, LTC’s cap is currently quite close to Dai (DAI), which means that with some more growth, the crypto can easily take the 11th spot from the stablecoin as well.