Litecoin price to catch up with Bitcoin's bull run as LTC eyes $1,500
- Analysts argue Litecoin is currently undervalued based on its correlation with BTC, comparing the ongoing rally with 2017 bull run.
- The altcoin has offered the second-highest risk-adjusted returns to traders over the past 24 hours.
- Grayscale Litecoin Trust increased its LTC holdings by nearly 5% within a single day; total assets under management are now $308.3 million.
- Recently Litecoin flipped Ethereum in the number of active addresses, fueling a bullish outlook in analysts.
Litecoin is making a comeback after an 80% drop from its all-time high. Analysts note that the altcoin is catching up with Bitcoin as it has a high correlation with the asset.
Analysts set a target of $1500 for Litecoin price as Bitcoin marches to new all-time high
Litecoin's correlation with Bitcoin and Ethereum is 0.62 and 0.63 respectively, based on data from crypto data aggregator Cryptowatch. The altcoin's correlation with the top asset is stable, and analysts have noted that LTC is gearing up for a comeback.
It has been over three years since Litecoin hit an all-time high of $420 on Coinbase. Though traders have considered the altcoin a "boomer" or old altcoin, LTC is primed to recover from the 80% drop in its price. The altcoin's run to $420 was not the first high in its 2017 cycle.
The journey that Litecoin price is currently on is similar to the one it traversed in 2013-2017. @kingthies, a cryptocurrency analyst, commented on Litecoin's price trend. The analyst published a chart in April,
Fundamental analysis also suggests LTC's price should be significantly higher in respect to its relationship with Bitcoin, as one could argue that 4x the supply designates 1/4 the price expectancy. That said, suggesting LTC reaching $15k (with a $60k BTC) would be taken any way other than seriously.
The analyst considers a target of $1500 conservative for LTC and expects a repeat of the 2017 cycle. LTC price is expected to go parabolic based on the analysis shared by @kingthies.
Interestingly, the altcoin has started its upward climb. LTC offered the second-highest risk-adjusted returns in the past 24 hours. Institutional capital is flowing into Litecoin; Grayscale LTC Trust increased its holdings by nearly 5% in the past day.
On October 23, experts noted that Litecoin flipped Ethereum in the number of active addresses. Litecoin's secure network and privacy features make it a top choice for most crypto traders and merchants accepting digital currencies.
Based on data from the blockchain intelligence platform IntoTheBlock, nearly 85% of LTC addresses are profitable at the current price. This implies that LTC is a top mover among altcoins, and 85% of wallet addresses holding Litecoin acquired the altcoin at a lower price, sitting on unrealized gains.
Pseudonymous cryptocurrency analyst @rektcapital has set a target of $225 for the altcoin.
$LTC / USD - #LTC #Litecoin
— Rekt Capital (@rektcapital) October 21, 2021
With this recent breakout, LTC breaks back into its $180-$225 range (orange-red)
It's possible to see a revisit of $225 soon
And upon revisit, it will be interesting to see how much this area has weakened as a point of rejection#Crypto pic.twitter.com/4IMkdg58FC
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
