Categories: Market

Thanks to this, LTC will soon receive $ 500

Last year, LTC was gradually ousted from the top 10 list of coins by market capitalization. As expected, the newer coins soon gained traction.

LTC has performed unobtrusively over the past few months, but has drawn the market under its spell with a possible breakout. After all, the price of LTC has increased nearly 40% in the past 3 days.

Reasons for the price increase

The main reason for this surge is that the broader market is doing very well. However, other factors cannot be excluded. With top coins like Bitcoin and ETH rebounding in double digits and hitting new ATHs, the switch from LTC should come as no surprise.

In particular, the correlation of LTC with Bitcoin’s new ATH has played an important role in the recent upward momentum. Interestingly, the correlation with BTC also increased sharply during the price rise.

Correlation between LTC and BTC | The source: IntoTheBlock

Additionally, the 14th coin fundamentals look very strong.

However, the annual price movement keeps a lower value and shows a downward trend along with an increase in price. This makes LTC more stable to strong price movements.

In fact, LTC achieved good ROI versus USD of 50% and 62% in 1 month and 3 months, respectively.

Volatility | The source: IntoTheBlock

Litecoin’s Sharpe ratio is also currently too high. At 5.81, it’s even higher than BTC (4.6 at the time of going to press). Does this signal that LTC is a safer choice?

Inflation protection?

Don’t forget that LTC’s slow price momentum and the relatively lower returns in the market have received a lot of criticism. But it still has power as it is often viewed as a potentially commercially oriented token.

US inflation hit a 30-year high in October, and in this context, older and safer coins like LTC still seem like good choices for fighting inflation. In the past in particular, LTC rebounded from negative views on fiat money as investors looked for assets to hedge against inflation fears.

This time around, however, LTC is more than just an inflation hedge. In fact, the price is predicted to be more profitable for HODLers.

LTC could easily hit $ 500, which is confirmed when aSOPR records ATH levels after May 9th. In addition, the indicator implies that, on average, the coins moved are sold at a profit.

Adapted SOPR | The source: Glass knot

Additionally, aSOPR’s bullish move looks similar to 2017, so a rally above $ 500 seems very likely based on the 2017 rally or actual conditions.

However, despite the high prices, there is still a lack of enthusiasm among retailers. A push from them will further confirm the bullish momentum. Right now, LTC fundamentals look strong. At the same time, the bullish outlook for LTC will continue to strengthen if the larger market remains active.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

At home at home

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page

CoinX

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

11 minutes ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

2 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

2 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

2 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

3 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

4 hours ago

This website uses cookies.