The Uncertain Future of Litecoin (LTC) Value Prospects

2024-06-12, 06:32

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/1718173704sdfx.jpeg)
## [TL; DR]
The Litecoin community maintains a positive sentiment despite the recent fall in the LTC price.

The LTC RSI and exponential moving average indicate a bearish outlook.

By the end of July the LTC price may reach $83.43.

## Introduction 
The current cryptocurrency trends are showing mixed market signals with most of the leading assets performing poorly while a few meme coins remain bullish. Several pioneering cryptocurrencies like ETH [and Litecoin (LTC) recorded some losses during the past few weeks](https://www.gate.io/post/NewsBTC/status/5189999 "and Litecoin (LTC) recorded some losses during the past few weeks") and they have remained depressed. Today, we analyze Litecoin’s current and forecast price performance.
## A Bearish Market Sentiment Rules the Market after LTC’s 30% Price Fall
A 30% LTC price drop that occurred in early April has unsettled many LTC investors. Sadly, the [LTC altcoin](https://www.gate.io/learn/articles/what-is-litecoin-ltc/147 "LTC altcoin") correction is taking a long time to occur which has forced most investors to change their investment strategies . Already, LTC holders intend to exit their long positions fearing a further LTC price decline since they do not want to allow an increase in unrealized loss.

The LTC market value to realized value (MVRV) ratio, an indicator that shows investor’s profit or loss, indicates that the investors are in a dire situation.  As at 30 May the Litecoin MVRV ratio was 11%, showing that the asset might enter a loss zone if it fails to retrace upwards. In the past, LTC used to reverse when its value was between 11% and 24%, a period popularly referred to as the danger zone. The following graph shows LTC’s 30 day MVRV as of 30 May.
![](https://gimg2.gateimg.com/image/article/17181737803.jpeg)
Litecoin MVRV Ratio – [Santiment ](https://app.santiment.net/ "Santiment ")

The other factor that indicated the LTC investors’ sentiment was the Relative Strength Index (RSI) reading. At that time, the LTC RSI reading was below 50 indicating a bearish momentum.

For context, the RSI indicator has a reading of between 0 and 100. If the reading is between 0 and 30 it shows an oversold market state. On the other hand, if the reading is between 70 and 100 the asset will be in an overbought state. However, if the reading is above 30 but below 70 it is considered a neutral zone.

On 31 May the LTC RSI reading was below 50, meaning that it was in a neutral state with a bearish cue. The best thing that risk averse investors would do was to sell their LTC holdings to limit the losses they might incur in the future. These bearish market indicators show that the bulls should inject more funds into the LTC market to push its price up.

Read also: [Litecoin Halving: All You Need To Know](https://www.gate.io/learn/articles/litecoin-halving/664 "Litecoin Halving: All You Need To Know")
## Litecoin Trend Analysis: The Key Factors that Might have led to a Bearish Outlook
First, there have been signs that some governments intend to crack down on crypto activities. That has led to a general negative market sentiment that might have forced some <a href="/ru/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin</a> holders to sell their holdings. The geo-political tension within the Middle-east could also have caused the LTC price drop.

Another cause of the [recent LTC price](https://www.gate.io/price/litecoin-ltc "recent LTC price") decline could be the rise in competition from other cryptocurrencies, especially meme coins such as BONK, WIF, SHIB and Floki. These crypto assets have been performing remarkably since the beginning of the year. It is important to note that many investors seem to prefer the recently launched <a href="/ru/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>-based meme coins.

However, not all hope is lost as there are positive developments related to Litecoin. For example, TradingView has reported an increase in LTC wallet addresses and transaction volumes. It stated that the LTC’s new active wallet addresses have surpassed those of <a href="/ru/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> by over 100,000. This surge in new LTC wallet addresses indicates that in spite of the token price drop some [investors are willing to buy Litecoin](https://www.gate.io/how-to-buy/litecoin-ltc "investors are willing to buy Litecoin"). Also, such a development shows a possible future increase in LTC investment and a positive Litecoin market sentiment.

## Litecoin Price Analysis: Staying Above $80
For the past 30 days Litecoin has failed to surpass $90 which would enable it to flip over the 38.2% Fibonacci Retracement LTC level. In fact, it has fallen below the 23.6% Fibonacci line, which is considered the bear market support floor. Thus, a deep below this Fib level signals a rising bearish momentum which may force it to drop below $80. On a brighter note, a rise above the 23.6% Fib line may trigger a strong LTC altcoin recovery which could push its value beyond $90, thereby invalidating the existing bearish outlook.

At the time of writing, LTC is trading at $80.07, after losing by 3.1% within the last 7 days. Based on the <a href="/ru/price/litecoin-ltc" target="_blank" class="blog_inner_link">Litecoin price</a> analysis, the coin has lost by 3.7% within the last 30 days and by 10.4% within the last one year. The next graph shows how LTC has performed within the last three months.
![](https://gimg2.gateimg.com/image/article/17181739164.jpeg)
Litecoin Price Performance within the Last 3 Months - [CoinGecko](https://www.coingecko.com/en/coins/litecoin "CoinGecko")

As observed on <a href="/ru/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a>, the price of LTC fell sharply on 12 April. However, since that time, it has failed to reclaim its previous week’s high of $110.18, attained on 1 April. Looking at the current Litecoin <a href="/ru/price-prediction" target="_blank" class="blog_inner_link">price prediction</a>, it is possible that its price may remain above $80 within the next few weeks. Changelly forecasts the LTC to reach $83.43 by the end of July. However, there is also a possibility that its price may fall to around $74.20.

Read also: [Litecoin Price Prediction & Forecast for 2024, 2025, 2030](https://www.gate.io/price-prediction/litecoin-ltc "Litecoin Price Prediction & Forecast for 2024, 2025, 2030")
## Conclusion
Litecoin had a sharp price drop in April which forced some investors to contemplate selling their LTC holdings. Although its value has failed to reach $90 it has also dropped by a small margin since it is fluctuating between $80 and $87. The increase in network activity in recent days has shown that the LTC price may rise within the next few weeks, if not days.
## FAQs about Litecoin
### Will Litecoin ever recover?
The Litecoin Price prediction for 2024 and 2025 shows that it will recover and reach new highs. For example, the current forecast shows that LTC will reach $83.43 by the end of July.
### What is all-time low price of Litecoin?
Litecoin attained an all-time low price of $1.15 on 14 January 2015. On the other hand, it reached an all-time high of $410.26 on 10 May 2021. The LTC price is currently 80.5% below its all-time-high.
### How far will Litecoin drop?
Based on its historical price the value of Litecoin may drop to $74.20. However, there is also a possibility that its price may rise to $90 in the near future.
### How much will 1 Litecoin be worth in 2025?
In 2025 the price of 1 Litecoin may fluctuate between $74 and $510. However, the exact price at any time will depend on the regulatory environment and the existing macroeconomic conditions.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>