The overall cryptocurrency market has seen a widespread reduction in its value. Major cryptocurrencies have been going through declines(eg-Litecoin), and specific coins have witnessed substantial drops of more than ten percent. Litecoin, in particular, has experienced a notable decrease, marking a 13.24% fall within a single day. This drop has also contributed to the asset’s overall losses for the week, amounting to 21.41%. Despite the prevailing negative sentiment in the market, the significant decline in Litecoin’s value has sparked concerns.
Earlier in the current month, this alternative cryptocurrency underwent a halving event, which is typically seen as a positive occurrence for prices. However, as of now, the expected favorable impact of the halving on Litecoin’s value has not yet become evident. Nonetheless, this doesn’t necessarily imply that this trend will persist going forward.
Analyst Envisions All-Time High for Litecoin by Q4
In a recent Twitter post, a market analyst known as Shan Belew pointed out the emergence of a bullish pattern on the chart of LTC, signaling the possibility of a price upswing in the upcoming months. Litecoin was found situated at the termination point of a symmetrical triangle formation. This specific pattern has historically led to rapid price hikes on the two prior instances it occurred.
The analyst predicts that the price of LTC has the potential to reach an all-time high during the last quarter of 2023. It’s important to note that the altcoin’s price doesn’t immediately display fluctuations right after experiencing a halving event. To illustrate, after the halving that took place in August 2015, LTC’s price remained within the range of $2.8 to $3.6 for a period of 19 months. Subsequently, this phase was followed by a substantial price surge, aligning with Bitcoin’s trajectory, which resulted in Litecoin’s value soaring to $370 by December 2017.
Adding to this, the Market Value to Realized Value Ratio (MVRV) chart indicated that Litecoin’s positioning was below 1. Currently, the MVRV ratio for LTC stands at 0.83913, reinforcing the notion that the asset is presently undervalued.