Litecoin is one of the oldest cryptocurrencies in the market, having launched in 2011, just a couple of years after Bitcoin. The asset is famous and extremely volatile, which means it’s good for day traders to make some profit. But is it good for long-term investors?
In this article, we dive into the nitty gritty of LTC price and where it may be by the end of 2023. Read on to find out more.
What is Litecoin?
Litecoin is a decentralized cryptocurrency created by Charlie Lee in 2011. Charlie was a former employee of Google in the Engineering department. Based on the Bitcoin code, which is open source, Litecoin differs from Bitcoin in very few ways.
The cryptocurrency is famous for its transaction speeds, which dwarfs Bitcoin’s block time by 8X. Litecoin uses the Scrypt hashing algorithm, which allows a block to be mined in approximately 2.5 minutes.
Litecoin is user-friendly and in relation to Bitcoin and cheaper too. Currently, LTC is the 11th largest cryptocurrency by market cap. The asset is trading at $97.56 (as of the time of June 11, 2023, 15:18 UTC).
Many investors love Litecoin because it is scalable, secure, cheap, and fast. However, the blockchain and its underlying asset have some quirks. LTC price is highly volatile and is prone to some security risks such as the 51% attack. Moreover, the asset is also subject to regulatory crackdowns since it is a cryptocurrency.
What is LTC Price Prediction for 2023?
LTC’s price has been mostly consolidating over the past 6 months. In the Year-to-Date (YTD) chart above, LTC started the year around $67 and gradually rose to touch a 3-month high of $105.71. The asset then took a hit with the entire market and crashed to lows of $65, before beginning a new ascent.
Over the past 6 months, the highest LTC has gone is $115 on July 3, 2023, after Bitcoin witnessed a huge spike in its price action. Although it looks like the asset has been ranging for six months, the truth is LTC has been slowly rising for the past year.
On June 14, 2022, LTC hit its yearly low and since then, it has been on an up-only trend. Investors that caught that bottom are currently +172% in profit.
Litecoin looks like it’s going to have a great year ahead with such nice technicals and also better fundamentals backing it up, LTC may make many investors happy by the year’s end.
Will LTC Price Crash in 2023?
The case for a bearish LTC in 2023 is interesting. While the chart looks favorable for a bullish turn, unforeseen fundamental news and price manipulation may strangle the bullish momentum. On the chart above, the long period of consolidation presented an opportunity for smart money to accumulate (or distribute).
Accumulation zones are formed during market bottoms when market makers hold the price down as they accumulate assets at cheap prices. On the other hand, distribution zones are formed when market makers hold the price up as they sell their positions before initiating larger sell orders that cause market crashes.
For Litecoin, it seems like the asset is a distribution zone. Note that investors who bought the bottom are +172% in profit right now and for some reason, the price has been stuck between $60 and $100 for six whole months.
This theory provides a very bearish LTC.
Will LTC Price Rally in 2023?
LTC has an upcoming halving in 20 days, making it one of the hottest cryptos on the market right now. From the history of halving, price rises slightly pre-halving, and then significantly post-halving. Since LTC’s halving comes about a year before Bitcoin’s, LTC has come to be known as Bitcoin’s forerunner.
Many investors are expecting to see spikes in LTC’s price soon after the halving. LTC block reward will be slashed from 12.5 to 6.25 LTC.
Litecoin’s entire chart history is one large range. The only difference is the starting point of the bull runs. In 2017 it began while LTC was at $2.40, while in 2021 it began when LTC was trading at $25. In this cycle, LTC’s low was $40. On both previous occasions, LTC rose to about $410-$420 highs before crashing back down.
If we should use history to predict the future, LTC may run again to this area before another crash. If it does, that will be a +338% ROI.
There is one thing we know for sure, LTC cannot settle before it reaches this price. That, however, may not happen in 2023. While LTC will rise in the coming weeks and months, it will touch these highs in 2023, just before, or after Bitcoin halving in May.
Final Thoughts
Litecoin is one of those legitimate cryptocurrencies that have been around for a long time. Investors feel safe when invested in it. However, trading cryptocurrencies is very risky because of their volatility. You are better off settling as a long-term investor. That said, different people have different appetites for risk. If you are going to venture into LTC trading (whether spot or margin), do it with caution.