Litecoin may outperform other altcoins soon
The cryptocurrency market has faced a challenging couple of weeks, largely due to the fallout from the FTX exchange collapse. A recent report by Coinbase Global suggests that the FTX disaster might extend the bear market for crypto, with concerns of a potential domino effect that could drag down other exchanges.
Usprkos ovome, Litecoin (LTC) has surged by more than 40% since November’s start, and some analysts suggest that LTC still has more room for growth. Capital.com shared:
One possible catalyst for a rise in Litecoin’s price is its upcoming halving in August 2023, when mining rewards will decrease from 12.5 LTC per block to 6.25 LTC. Even though this event is months away, traders often look ahead and begin to price in anticipated events well before they occur.
At the time of writing, Litecoin is the 15th largest cryptocurrency by market cap, having grown nearly 34% over the past week. Analysts predict that Litecoin may outperform other altcoins in the near term, seeing greater gains when altcoin prices rise and experiencing less downside when altcoin prices fall.
Additionally, whale addresses holding over 1,000 LTC have risen sharply since mid-June, and MoneyGram recently added LTC to its list of tradable and holdable assets on its platform for U.S. and Colombian users. MoneyGram holds substantial influence in the global remittance market, and Litecoin’s founder, Charlie Lee, expressed enthusiasm about this development. There are also rumors circulating on Twitter that regulation may soon favor proof-of-work coins, which could be a positive factor for Litecoin.
On the other hand, CoinMarketCap recently projected that Litecoin might trade around $59 by year-end, representing a 25% decrease from its current price. Investors remain wary of a potential recession, and if central banks continue with aggressive monetary policies, this could push the global economy into a downturn. Should that occur, Litecoin and other cryptocurrencies might see a decline in value as investors seek safer investment opportunities.
Technical analysis of Litecoin (LTC)
Litecoin (LTC) has surged by over 40% since early November 2022, climbing from $54.50 to $83.38. At the time of writing, LTC is priced at $78.03, still more than 45% below its January 2022 highs.
The chart below demonstrates that Litecoin has been in a strong downtrend since November 2021. Even with the recent uptick, LTC is still under pressure when we consider the broader trend.
Key support & resistance levels for Litecoin (LTC)
In the chart (from March 2022), I have marked key support and resistance levels that can guide traders in understanding where the price might move. The downside risk for Litecoin (LTC) is not over, but if it rises above $90, the next target could be $100. The current support is $70, and if this level breaks, it would trigger a “SELL” signal, possibly sending the price to $65. A drop below $60 (strong support) could bring the next target down to $50 or lower.
Factors supporting Litecoin’s (LTC) price increase
Over the last several weeks, trading volume of LTC has risen, and should the price break through the $90 resistance, the next target could be around $100. As noted by Capital.com, the upcoming halving in August 2023 (which will halve mining rewards from 12.5 LTC to 6.25 LTC per block) could contribute to the price increase.
Despite the ongoing crypto bear market, Litecoin is seeing growing investor accumulation, indicating that LTC has more potential for growth. Traders should also factor in Litecoin’s correlation with Bitcoin; if Bitcoin surpasses $20,000, LTC might also experience a boost in value.
Factors indicating a downfall for Litecoin (LTC)
Although Loopring (LRC) has gained nearly 30% this week (at the time of writing), it’s important to remember that Litecoin’s price could easily fall below $60. The bankruptcy of FTX continues to unsettle investors, resulting in a sell-off of assets across exchanges. Litecoin’s current support level is $70; if this level breaks, the next targets could be $65 or $60.
Uvidi analitičara i stručnjaka
Litecoin (LTC) made impressive gains this month, while most major cryptocurrencies have been struggling under the pressure of the FTX crisis. From a low of $47.60 on 9 November, LTC surged to $83.66 on 23 November, marking a 75% gain in a short period. The main question is whether it still has more bullish potential, which depends on both technical and fundamental factors. Technically, all signs point to further upside, but on the fundamental side, the wider crypto market remains influenced by macroeconomic factors. The ongoing bearish trend, FTX’s aftermath, and the underperformance of many cryptocurrencies are likely to persist until the uncertainty surrounding these issues clears up. Analysts predict Litecoin will likely outperform other altcoins in the near future, moving higher when altcoin prices rise and experiencing less of a downside when altcoin prices decline.
Izjava o odricanju od odgovornosti: Crypto is extremely volatile and not suitable for everyone. Never invest money that you cannot afford to lose. The information provided is for educational purposes only and should not be considered as investment advice.
