Source: PaxForex Premium Analytics Portal, Fundamental Insight
You may know Litecoin as "silver" compared to "digital gold" Bitcoin. The price of this modified bitcoin clone was once over $400 per token, but now it has dropped to around $95.
Could we be facing a fantastic opportunity to buy LTC coins while the price is low before it starts another steep rise? Let's break it down.
Have you heard the hype around Litecoin lately? If not, here are some facts you might want to know.
Litecoin became the star of the cryptocurrency universe in November 2022, showing a 37% rise in price. This spike caught the attention of crypto investors around the world. While the coin has been fairly steady at the beginning of the year, it has some interesting catalysts that could trigger sufficient growth in 2023.
One such catalyst is the long-awaited August 2023 halving event, when the creation of new LTC tokens will be cut by 50%. This move will make Litecoin even more scarce and reduce its future inflation. Historically, events involving a halving usually raise the value of the coin. That's why many crypto traders are holding onto their seats, looking forward to the Litecoin rally around this event.
But that's not all. Litecoin's new partnership with Mastercard has caused quite a stir in the cryptocurrency world. As part of this partnership, Mastercard will offer Litecoin-based cards to customers in the UK and EU, after a similar test program was successfully implemented in the US market. It could possibly make LTC a more common payment mechanism, bridging the gap between cryptocurrencies and fiat and making them even more valuable in the long term.
Remember that bitcoin is concentrated on preserving value in the long term, while Litecoin's parameters have been adjusted to make it more useful as an everyday payment platform. Bitcoin may be the more popular choice because of its original blockchain invention, higher liquidity, and broader visibility, but Litecoin also has its own exceptional benefits, such as lower transaction costs and faster payment settlement.
Looking back to 2019, according to Coinbase, Litecoin posted a yearly gain of 38% after its last halving. It's hard to predict the exact future of any investment, let alone a volatile cryptocurrency. Nevertheless, most forecasters agree that Litecoin will rise well above $100 per token by the end of 2023.
Overall, Litecoin is a cryptocurrency with huge potential. The upcoming halving and the partnership with Mastercard are key growth catalysts to watch out for in 2023. In fact, the Mastercard project could be a game changer as it makes Litecoin more accessible for everyday payments. Expanding use in the real world is essential to the growth of any cryptocurrency's value. This payment processing agreement is exactly the kind of partnership that can transform Litecoin from a little-known altcoin to a well-known cryptocurrency.
While bitcoin remains the most popular and valuable cryptocurrency, Litecoin's unique characteristics may make it an appealing investment option for some. So pay close attention to the Mastercard agreement, prepare for Litecoin's impending reduction in mining fees, and keep an eye out for new consumer partnerships.
Litecoin looks like a serious investment for 2023. With several potential catalysts on the horizon, this coin is set to strengthen. Of course, you can't say the $100 price tag is magic, but buying a few tokens at such modest prices could lead to serious profits when the frozen cryptocurrency market starts to heat up again.
As long as the price is above 82.50, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 94.32
- Take Profit 1: 106.00
- Take Profit 2: 115.00
Alternative scenario:
If the level of 82.50 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 82.50
- Take profit 1: 73.00
- Take Profit 2: 66.00
