The value of Litecoin (LTC), the cryptocurrency that powers the payments-focused layer-1 Litecoin blockchain protocol, has been surging in the previous few days, regardless of consolidation seen within the broader crypto market.
As such, price predictions are upbeat.
LTC/USD was final altering arms slightly below $90 per token, up one other 3.5% on Tuesday and taking the cryptocurrency’s three-day run of good points to almost 12%.
Merchants have been attributing a mix of technical shopping for, with LTC having lately discovered robust help at a long-term uptrend and optimism concerning the upcoming Litecoin halving on the twond of August as potential catalysts behind the cryptocurrency’s ongoing outperformance versus the broader market.
Litecoin lately bounced from an uptrend that has been in play since final November, and has additionally recovered strongly again to the north of its 200-Day Shifting Common.
The halving, in the meantime, will see the Litecoin price at which Litecoin is issued to miners halved, which can scale back the cryptocurrency’s inflation price.
Many analysts suspect a decrease inflation price ought to have a optimistic long-term worth impression.
Whereas Bitcoin halvings have traditionally coincided with bull markets, the linkage between Litecoin halvings and robust worth efficiency has been considerably weaker.
However nonetheless, only a few would argue that the upcoming Litecoin halving is a bearish occasion for the LTC worth.
The Litecoin halving will gradual issuance from 12.5 LTC per block to six.25 per block.
Litecoin Worth Prediction – The place Subsequent for the LTC Worth?
If Litecoin can muster a sustained push to the north of the $90 degree and its 50 and 100DMAs, each of that are near $90, that ought to open the door to a retest of annual highs within the $103-105 space.
That would imply pretty fast and straightforward good points of round 15% from present ranges.
After all, if the broader crypto market continues to stay sluggish, with Bitcoin and Ether locked inside latest ranges, this might act as a headwind for the LTC worth within the close to time period.
Within the absence of a resumption of the broader markets rally, it is likely to be a bit optimistic to guess on a giant near-term breakout for Litecoin into the mid-$100s.
Can LTC Hit $1,000 in 2023?
With cryptocurrency markets seemingly having entered the early levels of a brand new bull market, traders are serious about what upside worth ranges they need to be concentrating on for the years forward.
Some Litecoin bulls is likely to be hoping for the cryptocurrency to hitch the $1,000 per token or above membership in 2023 – in the meanwhile, solely two cryptocurrencies are on this unique membership, Bitcoin and Ether.
Nevertheless, that may require Litecoin to 10x from present ranges within the area of solely round seven and a half months.
That shouldn’t be dominated out as inconceivable.
Between November 2020 and Could 2021, Litecoin posted close to 8x good points to leap from round $55 to above $410 per token.
However that coincided with a large run-up in broader crypto costs, pushed by zero rates of interest, huge fiscal stimulus and a speedy reopening-fuelled financial rebound, in addition to a sudden surge in institutional curiosity into crypto as an asset class.
Whereas it may be strongly argued that the development in direction of larger societal and institutional investor adoption of crypto expertise and crypto as an asset class has continued, these different financial circumstances possible received’t be in play for 2023.
Sure, the Fed is more likely to pause its rate of interest hikes and should do some price reducing this yr, that means macro ought to not be the large headwind that it was in 2022 when the Fed was aggressively mountaineering rates of interest to get inflation beneath management.
However Litecoin bulls ought to mood their optimism about hitting $1,000 this yr.
However Litecoin Nonetheless Set Up For a Good 12 months
That’s to not say the cryptocurrency can’t nonetheless carry out properly this yr.
This yr’s extra dovish Fed needs to be a tailwind for Litecoin and different cryptocurrencies, barring any additional main inflationary shocks.
And if the continuing financial institution disaster worsens, the demand for arduous cash alternate options like gold and Bitcoin will develop.
Litecoin doesn’t seize the general public’s creativeness in fairly the identical means as Bitcoin in its place type of cash simply but, nevertheless it ought to – it’s a extremely decentralized, strong and censorship-resistant fee community similar to Bitcoin and really scales exponentially higher to be used as a foreign money in on a regular basis funds.
Certainly, in accordance with a latest tweet by the official Litecoin Twitter account, the cryptocurrency can already be utilized in funds throughout numerous main platforms.
With a surge in meme coin-related exercise on the Ethereum and Bitcoin blockchains having resulted in a giant spike in transaction charges on each, the Litecoin use case is additional boosted.
Certainly, Litecoin’s median transaction charge is a stunningly low $0.001, regardless of transactions on the blockchain lately exceeding Bitcoin.
In the meantime, simply as the brand new BRC-20 token commonplace has arrived to the Bitcoin blockchain, basically reworking right into a smart-chain, LRC-20 has simply arrived on Litecoin and is being developed on high of the Litecoin Ordinals protocol.
All the above, plus Litecoin’s latest partnership with Mastercard that’s anticipated to spice up adoption and the upcoming halving occasion of 2023 means that Litecoin has a robust outlook for the upcoming crypto bull market.