Popular cryptocurrency analysts have weighed in on Litecoin’s recent price surge and have said that the cryptocurrency is set to undergo a massive breakout after a “large accumulation” period that preceded its upcoming halving event.
On the popular microblogging platform Twitter, pseudonymous crypto analyst Kaleo told their over 500,000 followers that $LTC’s recent surge appears to be the “real deal” as it’s “long overdue for a solid pump.” Per Kaleo, Litecoin has long periods in which it slowly moves down, followed by quick pumps.
Litecoin was created back in 2011 as a fork of Bitcoin, and features near-zero cost peer-to-peer transactions. It differs from the flagship cryptocurrency in a number of ways, however, with reduced transaction confirmation times, lower fees, a larger maximum supply of 84 million LTC, and other different technical aspects.
The cryptocurrency was created by former Google engineer Charlie Lee, who referred to it as a “lite version of Bitcoin” at one point. It has been outperforming the wider cryptocurrency market in the wake of FTX’s collapse, which has seen several platforms, including Genesis and BlockFi, halt withdrawals.
In their thread, Kaleo added that as a rule of thumb the meme-inspired cryptocurrency Dogecoin ($DOGE) and $LTC were always a “buy when it’s boring” as these cryptocurrencies surge during bull runs.
Another popular cryptocurrency analyst, Smart Contracter, noted $LTC appears to be breaking out of its range after “a rather large accumulation.” Per the analyst, $BTc tends to bottom around 500 days before its next halving event, and $LTC’s breakout is coming less than 230 days ahead of its own halving.
As reported, Litecoin recently overtook Solana ($SOL) when it comes t market capitalization, with the latter’s price plunging as it was heavily influenced by the collapse of cryptocurrency exchange FTX.
Much like BTC, Litecoin undergoes halving events, in which the coinbase reward for miners who find blocks on the network is halved. Litecoin’s next halving event is expected to occur in August 2023, and will reduce mining rewards from 12.5 LTC to 6.25 LTC. Halving events are seen as bullish, as new supply on the market is halved through them.
At the time of writing, $LTC is trading at $77 per token, up from around $50 seen weeks ago. The cryptocurrency’s all-time high was above $350 in April of last year, according to CryptoCompare data.
Featured image via Pixabay