According to Litecoin founder Charlie Lee, with only three months left until the crypto halves, the price of LTC is well positioned for some huge gains.
See all the details below.
Litecoin Has the Potential to Make Big Gains, Even Compared to Bitcoin
Litecoin (LTC) can make big gains compared to Bitcoin (BTC), especially as the August halving event approaches, according to crypto creator Charlie Lee.
In fact, Litecoin is up 85 percent from its lows compared to bitcoin. Lee claims that the LTC/BTC pair could rise to 0.025 BTC or over 700% in the next bullish cycle, with Litecoin having higher throughput by design, scalability with extension blocks, better fungibility and privacy from MWEB.
In fact, Lee stated the following:
“I can see an upside target of 10% (0.025 LTC/BTC). In the next bull market, 5% (0.0125) shouldn’t be too hard to hit. I honestly don’t see it going much below 1% (0.0025) on the downside. The next halving will take place in ~92 days. It will be funny.”
His remarks come after Litecoin rebounded 85% from its record low of 0.001716 BTC in June 2022.
However, LTC is still about 90 percent below its record high of 0.051 BTC since November 2013 due to increasing competition in the altcoin market.
What is the halving of Litecoin?
LTC’s recovery in recent months has been accompanied by growing interest in the upcoming halving of the block reward.
The Litecoin block reward for miners will be reduced by 50 percent from 12.5 LTC to 6.25 LTC in August 2023.
As a result, the new supply of LTC will decrease by 50%, which, at least in theory, should make LTC scarcer in the market and thus increase the price.
Historically, the months leading up to the halving of Litecoin have generally prompted traders to accumulate LTC. For example, the first halving event in August 2015 was preceded by a 450 percent price increase versus bitcoin.
However, the months leading up to the second halving saw limited gains as Bitcoin’s cryptocurrency dominance grew during the U.S.-China trade war. But as a rule, LTC/BTC tends to fall sharply after halving events, suggesting the same could happen after August 2023.
Technical data on LTC prices suggests a similar scenario, as the LTC/BTC pair continues in what appears to be a bearish flag pattern.
The pair may rebound towards the upper trendline of its bearish flag, which coincides with the 50-3D exponential moving average (50-3D EMA) at 0.0035 BTC, before halving.
However, the target for the bearish flag is around 0.0024 BTC, a 20% drop from the current price level.
Focus on the price of LTC
We see that the price of LTC has risen approximately 250% since the first halving and 500% since the second halving, measured from the session lows.
Specifically, the price experienced a similar bullish trajectory prior to the August halving, with LTC up 120% from its session low of around $40.
Moreover, it may continue to rise in the coming months, based on a mix of technical and on-chain indicators.
For example, Litecoin is undervalued relative to its fair value, according to Glassnode’s MVRV-Z score of -0.139.
The MVRV-Z score represents the ratio of the market cap to the realized cap. Thus, when the market value is significantly higher than the realized value, it historically indicates a market cap. Meanwhile, the opposite indicates a market bottom.
Thus, Litecoin has entered the green zone, which usually precedes strong bullish reversals.
From a technical perspective, the price of LTC is well positioned for a rebound as it has retested its multi-month rising trend line as support.
In this case, LTC/USD could rally towards its horizontal resistance level of around $100, a move of around 20% from current prices.
Source: https://en.cryptonomist.ch/2023/05/03/litecoin-poised-700-gains/