Litecoin is up about 31% so far this year, but onchain data reveals that LTC is still trading at discounted prices. So, what are the next price levels for the popular altcoin LTC? Here are the details…
Experts explained: Is the price of the popular altcoin Litecoin a buying opportunity?
An onchain metric shows that Litecoin (LTC), the 12th largest cryptocurrency by market cap, is trading at discounted prices. Litecoin’s market cap to realized value (MVRV) Z-score was momentarily negative. According to analytics firm Glassnode, a score below zero indicates that the coin is undervalued compared to its fair value. However, the MVRV Z-score shows how many standard deviations the market value differs from the realized value. Historically, Z-scores above eight have indicated overvaluation and bull market highs, while negative values have indicated undervaluation and market bottoms.
The graph shows that the Z-score has been consistently negative since July of last year. This is not a new situation. The indicator has consolidated below zero several times in the past, eventually paving the way for major bull runs. If history is a guide, the path of least resistance appears to be on the higher side. However, Altcoin Litecoin and the crypto market remain vulnerable to adverse macroeconomic developments such as liquidity tightening and the state of the global economy. Instantly, LTC is changing hands at $92, which represents a gain of about 31% for the year. According to the data, this week LTC surged as high as $95. Instantly, according to experts, the LTC price is trading at discounted levels from the price it should be.
Litecoin overtakes Bitcoin alternatives
Litecoin price has surged 17.29% over the past four days, surpassing many altcoins in terms of growth this week. However, LTC has risen above most of the “Bitcoin alternatives” for a long time. LTC, on the other hand, has outperformed some of the biggest BTC substitutes in the past 12 months.
The increase in Litecoin price since May 2022 has made it surpass some other well-known cryptocurrencies like Bitcoin Cash, Bitcoin SV, Monero. Built solely from Bitcoin’s code, Litecoin has performed and continues to perform exceptionally.
$LTC outperforming all the 'BTC alternatives' pic.twitter.com/q8lXeikDKP
— Forrest (@00forrest) May 18, 2023
Popular altcoin LTC price could potentially bounce back
Instantly, altcoin LTC is gaining traction among crypto investors because of LTC-20. This momentum will likely continue as the network is expected to halve this August. The expectation in this regard caused ten chain addresses to increase by more than 1 million to reach 8.26 million in total.
However, these investors are not only participating in the network, but also collecting as much LTC as possible to make a profit ahead of the halving. Investors with 10,000 LTC to 100,000 LTC balances in their wallets have accumulated over a million LTC tokens worth more than $91 million since the start of the month. This is an indication that the price is potentially on the upside as it will take some time for investors to start selling and making profits.
It is also expected to benefit from the decreasing correlation of the altcoin Litecoin price with Bitcoin. The correlation, which was 0.83 a week ago, is now 0.73. This will be in favor of Litecoin price as Bitcoin price is currently trading below $27,000.
Looking forward, experts expect the Litecoin price to continue to rise as it aims to surpass $100, potentially marking new 2023 highs above $102.
