According to a recent tweet from Santiment, a onchain analytics business, altcoins, or alternatives to Bitcoin, are displaying underbought indications after their market values declined relative to Bitcoin at the start of the week.
It discusses how many cryptocurrencies are encroaching on prime real estate. In particular, Santiment highlights a number of assets, such as LTC, where traders are “in particular pain” and may soon strike a bottom.
As the cryptocurrency market dips in May, a number of altcoins are oversold on short to intermediate time frames. Although it is possible that the correction could persist a little longer, if oversold circumstances are confirmed, significant bounces back up often occur.
Litecoin is now down 2.96% at $79.67 after falling as low as $75.61 on May 8. Despite signs of recovery, attention is firmly on the daily MA 50 level at $81.23.
Litecoin’s halving event imminent
The 12.5 LTC block reward for miners will be lowered by 50% to 6.25 LTC as part of Litecoin’s scheduled halving event in August 2023. Theoretically, this might make LTC more scarce on the market and drive up its price.
Charlie Lee, the man behind Litecoin, predicted that as the August halving event draws near, the cryptocurrency may overtake Bitcoin.
Litecoin has a lot of potential, he claims, and the market is right in pricing it at just over 1% of Bitcoin.
According to Lee, LTC/BTC might rise to 0.025 BTC during the upcoming bull cycle: “I can see an upside goal of 10% (0.025 LTC/BTC). It shouldn’t be too difficult to reach 5% (0.0125) during the upcoming bull market. On the downside, I genuinely don’t think it will go far below 1% (0.0025). In 92 days, there will be another halving. It’s going to be enjoyable.
Considering that the LTC/BTC tag now costs 0.0028 BTC, a jump to 0.025 BTC would represent a gain of 792%.
