Experts’ opinion is that Litecoin is undervalued compared to Bitcoin. However, Litecoin tripled its value in the last year. Though it has an ATH of $422, it is undervalued because the potential price could be $1500. Available at a lower price, it is considered an alternative to Bitcoin and Ethereum.
Halving is the catalyst of Litecoin, and it is the reason behind the increasing value of Litecoin. Till now, only two halves have been done. After every 840,000 blocks, the miners are rewarded with a Halve. It is the built-in process of the algorithms of Litecoin. We are expecting the next halving at the end of 2023.
Price starts to grow after halving, and a price rise can be expected at that time. It is the regulation of the supply chain to create the scarcity of the coin.
The founder of Litecoin, Charlie Lee, calls it a ‘Lite version of Bitcoin.’ In 2021, the current market cap of this coin will be around $14 billion.
Now let’s look at the price analysis and know more about Litecoin price.
At the time of writing this post, LTC was around $148. It has been coming down towards the support level of $120. If you observe the chart closely, you can find that the resistance level is around $180.
Since May, it has been consolidating in a range. On the daily chart, the MACD is bearish. The price is in an oversold zone because RSI is below 30.
However, one can find increasing volatility on the Bollinger Band. The candlesticks are in the lower half of BB, and the Moving Average is also going downwards. Most of the technical tools are showing bearish signals. Still, many experts are saying it is undervalued.
Then, is it the right time to invest? Since the price is moving sideways, investors may wait for some time. Price is coming downwards to its support level.
Bitcoin, the world’s largest cryptocurrency, is also losing its value. World’s indices are down because of inflation issues in the USA, increment in interest rates, and various other factors.
Please wait a couple of more weeks to find momentum in the market. It is not a good chart for swing trading; only long-term investors should invest in it. Litecoin has a high potential to grow like Bitcoin, and you should not miss the opportunity.