Santiment, an onchain analytics company, recently tweeted that altcoins, or alternative cryptocurrencies to Bitcoin, are showing underbought signals after their market caps fell in comparison to Bitcoin at the beginning of the week.
It mentions that tons of altcoins are beginning to creep into opportunity zones. Santiment notably emphasizes several assets, including LTC, where traders are "in particular pain" and thus may soon reach a bottom.
As #altcoins continue to flush while #Bitcoin & #Ethereum manage to stay afloat in their ranges, we see tons beginning to creep into opportunity zones. Assets where traders are in particular pain & may be bottoming out in the near future include $LTC, $SRM, $RAD, $VIDT, $HIGH. pic.twitter.com/rPy3lPUGJI— Santiment (@santimentfeed) May 9, 2023
Several altcoins are getting oversold on short to intermediate time frames as the crypto market declines in May. While the possibility of the correction lasting a bit longer cannot be overruled, if oversold conditions are proven, strong bounces back up typically happen.
Litecoin has recovered from hitting a low of $75.61 on May 8 but is currently down 2.96% at $79.67. Although a recovery appears to be underway, the focus is still on the daily MA 50 level at $81.23.
Litecoin's halving event imminent
Litecoin's halving event is expected to occur sometime in August 2023, when the 12.5 LTC block reward for miners will be reduced by 50% to 6.25 LTC. Theoretically, this might increase the market's scarcity of LTC and thus boost its price.
The market currently values Litecoin at slightly over 1% of Bitcoin. Is that fair? I think the market is accurate today, but Litecoin has a ton of potential. It has a higher throughput by design and scalability with extension blocks and better fungibility and privacy from MWEB.— Charlie Lee Ⓜ️🕸️ (@SatoshiLite) May 2, 2023
Charlie Lee, the creator of Litecoin, projected that the cryptocurrency might gain significant ground on Bitcoin, especially as the August halving event approaches.
He says that the market is accurate, valuing LTC at just over 1% of Bitcoin, but that there is a lot of potential for Litecoin.
According to Lee, the next bull cycle may see LTC/BTC increase to 0.025 BTC: "I can see an upside target of 10% (0.025 LTC/BTC). In the next bull market, 5% (0.0125) shouldn't be too hard to achieve. I honestly don't see it going much below 1% (0.0025) on the downside. The next halving will be in 92 days. This is going to be fun."
The LTC/BTC tag currently goes for 0.0028 BTC, so a rise to 0.025 BTC implies a 792% increase.