As broader cryptocurrency markets come under pressure, Litecoin (LTC) is no exception.
As a result, near-term price predictions remain somewhat downbeat.
The cryptocurrency, which powers the payment’s focused Litecoin blockchain that was created back in 2011 out of a tweaked version of the Bitcoin source code, was last changing hands around $79 per token.
That means it’s down a little over 10% this month, and is down about 25% versus earlier annual highs in the $105 area.
Still, at current levels, Litecoin is still around 20% higher versus its mid-March lows in the $65 per token area.
That’s not quite as impressive as Bitcoin, which remains up around 34% versus its mid-March lows.
But it nonetheless implied that Litecoin’s 2023 bull run remains intact and healthy.
Indeed, Litecoin continues to trade above an uptrend that has been in play since last November, though its recent dip below its 200-Day Moving Average is a bearish sign.
Price Prediction – Can Litecoin (LTC) Reach $100 in 2023?
Litecoin has already surpassed the psychologically important $100 level on multiple occasions in 2023.
Can Litecoin move back to and surpass its 2023 highs in the remaining seven and a half months left of the year?
Absolutely it can, even if the market is seeing a short-term setback right now.
That’s because, on the one hand, macro conditions are improving, for crypto, at least.
The likelihood of the US falling into a recession in the second half of the year has been rising in recent months, thanks in part to a contraction in lending amid the ongoing regional US bank crisis.
That should help bring inflation back under control and result in labour market weakness, which means the Fed is very likely done with rate hikes and will probably soon be cutting interest rates.
Whereas an aggressive hawkish Fed was a major headwind for cryptocurrencies like Litecoin in 2022, a more dovish Fed should be a tailwind in 2023 and beyond, barring any further major inflationary shocks.
And if the bank crisis worsens, the demand for hard money alternatives like gold and Bitcoin will grow.
Litecoin doesn’t capture the public’s imagination in quite the same way as Bitcoin as an alternative form of money just yet, but it should – it is a highly decentralized, robust and censorship-resistant payment network just like Bitcoin and actually scales exponentially better for use as a currency in everyday payments.
Indeed, according to a recent tweet by the official Litecoin Twitter account, the cryptocurrency can already be used in payments across a number of major platforms.
With a surge in memecoin-related activity on the Ethereum and Bitcoin blockchains having resulted in a big spike in transaction fees on both, the Litecoin use case is further boosted.
Indeed, Litecoin’s median transaction fee is a stunningly low $0.001, despite transactions on the blockchain recently exceeding Bitcoin.
All of the above, plus Litecoin’s recent partnership with Mastercard that is expected to boost adoption and the upcoming halving event of 2023 suggests that Litecoin has a strong outlook for the upcoming crypto bull market.
Regarding the upcoming halving, Litecoin’s past two halvings haven’t been quite as bullish for the price action as they have been for Bitcoin.
But the bulls may continue to hope that this time will be different.
The Litecoin halving will slow issuance from 12.5 LTC per block to 6.25 per block.
This article was originally published by CryptoNews.