- Litecoin failed to follow the broad market trend as it declined by 2.9% in the last 24 hours to trade at $68.97.
- Its trading volume has also declined by 19% in the past week following the significant decrease in market sentiment.
Litecoin (LTC) continues to remain undervalued as it failed to take advantage of the recent broad market rally that catapulted several altcoins into a new yearly high. In the past week, Bitcoin made contact with the $52k price point before pulling back to the current price of $51,590.60.
The likes of Ethereum, Solana, Worldcoin, and Render recorded a fair gain over the past few weeks, leaving investors with positive returns despite the current “bearish drive.” Interestingly, Litecoin is still below its 2023 predicted price of $82.77, having declined by 2.9% in the last 24 hours, and 0.6% in the last seven days to trade at $68.97.
A quick look at its 90-day performance shows disappointing results: it dropped 2.10% of its value within the period from the previous price of $70. Its 30-day performance is no different as it declines by 4.74%.
Litecoin has also had its trading volume fall by 19.0% in the last seven days, the same as its circulating supply which is 0.2% down. According to the report, the circulating supply is currently standing at 74.23 million, representing 88.37% of the 84.00 million maximum supply. Litecoin gradually moved out of the top ten largest cryptos by market cap, currently ranked 20th with a market cap of $5,116,910,153.
Analysts Comment on the Recent Price Action of Litecoin
Early last month, a renowned trader known for creating the Bollinger Bands, John Bollinger expressed concern about how Litecoin performed compared to Bitcoin in the past. Litecoin was labeled as the “Digital Silver” due to its fast transaction speed and lower fees. At that time, he observed that Litecoin had generated a “2 bar reversal,” signaling a possible change in trend.
At the time of the prediction, Litecoin was valued between $67.24 and $71.86 on the seven-day chart. Interestingly, nothing much has changed after those bullish signs.
Analysts have over the past few months assessed the undervalued tag on Litecoin with some stating that it is very risky to get involved with an asset when confidence gets low and the price is high. These analysts concluded that the asset is overvalued since reserve risk showed a sign of an uptick.
However, a renowned analyst Shan Belew shared a chart on X, arguing that Litecoin would always remain undervalued as long as it remains under the white line. Analysts took a look at the social metrics of the asset and realized that its popularity has declined significantly. The market is very bearish, dominated by negative sentiment.
Regardless, crypto analyst Michaël van de Poppe predicted that Litecoin can still surge to between $220 and $260.
In 2003, a gold ETF was launched. After that gold went 5x. So we know that if the [Bitcoin] ETF is going to be confirmed, any of those, probably all of them who applied and accepted, you are super sure that we’re going to have the big cycle in this case, probably peaking in 2025.
The prediction was based on the spot Bitcoin Exchange-Traded Funds approval which was speculated to attract billions of dollars into the industry. In the week ending February 16, Litecoin had an inflow of $0.6 million.
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