Since the Litecoin price decline after its third halving, there has been a lack of interest from investors. However, an analyst believes that the price can increase by over 30% to $83, with possible retracements to $55 and bounces to $77. Transaction numbers and volumes have been declining, but this could either hinder or trigger a new rally.
Our analysis of the situation
Since its much-anticipated halving event in August, Litecoin has faced a challenging time in the crypto market. With heavy profit-taking following the price surge triggered by the halving expectations, LTC lost its favor among investors. However, the tides might finally be turning for the coin, with one analyst predicting a remarkable 30% increase in price on the horizon.
In a recent post, the pseudonymous analyst known as P_S_trade revealed a bullish outlook for Litecoin, suggesting that the altcoin is gearing up for a run-up to $83. Despite the current headwinds in the crypto market, the analyst believes that Litecoin could follow the growth trend. However, this projection would be null and void if the crypto market were to dip back below $27,000.
Historically, Litecoin has often been the first to experience an upside when the crypto market starts to recover. Unfortunately, this hasn't been the case recently due to significant profit-taking. Nonetheless, the analyst's chart indicates a possible retracement to around $55 before a potential bounce-off drives LTC to new heights of $77. This correction would mirror a previous instance, suggesting that it may pave the way for another surge.
Following this second correction, the analyst predicts a bottom around $67 before Litecoin recommences its upward ascent. According to the chart, the top of this second rally could reach just above $84. While an official timeline is not provided, the noted trade range suggests a medium-term outlook, potentially spanning a couple of months.
While the analyst envisions a surge in Litecoin price, other metrics seem to point in the opposite direction. Daily transaction numbers for the altcoin have steadily declined since the August halving event. BitInfoCharts data reveals a drop from over 584,000 daily LTC transactions in May to approximately 104,000 by Tuesday, October 10. This decline reflects a lack of interest from investors, often influenced by bear market conditions.
Furthermore, CoinMarketCap data indicates a 13.26% decline in the daily trading volume of Litecoin, a bearish metric that could hinder chances of a reversal. However, it could also signal the formation of a bottom that triggers the start of another rally.
As Litecoin faces both challenges and potential opportunities, the path ahead remains uncertain. While the analyst's optimistic projections offer hope for LTC investors, it is essential to keep an eye on the broader market dynamics and how they might influence the altcoin's price movement going forward.
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute financial advice. Cryptocurrency investments are subject to market risks, and readers should do their own research before making any investment decisions.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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