Is Litecoin a Hidden Gem Amidst Corrections?

• Litecoin is predicted to break critical support levels to continue a downward trend in the next few days.
• However, others expect the price to go as high as $128 before the end of the year

Litecoin (LTC) is currently trading at $71.66 after surging by 14.9% in the last three months, adding $9.33 to its previous price. With the asset expected to trade above its $80 resistance level, the general bearish run in the market took it down the price curve, falling by 2.8% in the last seven days. In the last 24 hours, Litecoin has declined by 1.88%

Interestingly, the question of whether Litecoin is undervalued is back in discussion, as analysts believe that the asset should be valued higher than the current price

Analysts first took a look at the reserve risk of the asset. According to them, it is always risky to get involved with the market when confidence gets low and the price is high. The reserve risk also showed a sign of uptick, indicating that the asset is overvalued. A renowned Litecoin analyst Shan Belew shares a contrary view. According to him, the asset would remain undervalued as long as it remains under the white line in a chart shared with his X followers

To better understand the investors’ sentiment of the asset, analysts dived into the social metrics. From the data, it was realized that the popularity has declined. The weighted sentiment also recorded a drop last week according to the reports. This implies that the market is currently dominated by the negative sentiment. Another look into the blockchain’s daily chart to understand the behavior of Investors showed that the asset is considered overvalued to some extent

More on the Litecoin Price Analysis

According to the MACD, there is a projection of a bearish crossover in the near term. On top of that, there are downticks in the Money Flow Index (MFI) and Chaikin Money Low (CMF). This indicates that there is a higher possibility of a price fall in the next few days

Another report also discloses that the general mining industry has recorded growth as hashrate recorded an uptick after pulling back on December 4. Litecoin’s current hashrate stands at 859.48 TH/s. According to Coinwarz, the mining difficulty of the asset also remains high, with a current reading “sitting at” 28.62 M

In the middle of the month, Crypto analyst Michaël van de Poppe predicted that Litecoin has the potential to trade between $220 and $260.

His prediction was based on a possible spot Bitcoin Exchange-Traded Fund (ETF) approval which could attract massive funds into the crypto industry. According to Bloomberg’s James Seyffart, the approval could be granted by January 10 and could set the market up for a new bull run

Recommended for you

• Cardano (ADA) Enters Top 10 as a New Cryptocurrency Contender Rapidly Ascends• ADA’s Remarkable Rally: Cardano’s Value Skyrockets by 47% in 30 Days• Where Next For Stacks (STX) and Terra Luna Classic (LUNC)? Meme Moguls Ascending To Top Altcoin StatusAnalysts believe that Litecoin can go as high as $128.36 before the year ends. On average, the asset could trade at $106.96 by December 31