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Litecoin momentum is potentially shifting, network usage is skyrocketing, and the cryptocurrency is halving ahead.
However, the asset remains heavily undervalued compared to Bitcoin, Ethereum and other factors. Here’s a closer look at why Litecoin might be the most undervalued asset in the cryptocurrency.
Comparison of LTC, BTC and ETH
Litecoin was once one of the top 10 cryptocurrencies, but has since fallen off that lofty pedestal. A nine-month bull run and over 10,000% ROI allowed the coin to continue its fifth full year.
Unlike other top coins like Bitcoin and Ethereum, LTC has never reached new all-time highs in 2021. On some exchanges, the all-time high is still set for 2017. After the peak of the bull market in 2017, Litecoin fell behind the two largest coins in market capitalization.
But this is common during the final stages of a bull market, after which Litecoin instantly outperforms both BTC and ETH. This situation could come back, according to the charts below, starting with the comparison of LTC with Bitcoin and Ethereum below.
LTC sharply behind BTC and ETH |LTCUSD on TradingView.com
Cryptocurrency market is ready to change
Another indication that LTC should outperform the market can be found in the monthly bullish LMACD crossover. The signal is at least two months ahead of Bitcoin and Ethereum and suggests a larger move in Litecoin first.
According to Investopedia, momentum “refers to the inertia of a price trend that continues to rise or fall over a period of time.” LMACD is a tool for measuring momentum, and it can indicate that Litecoin’s momentum has just made a strong swing in the positive direction.
The LMACD only crossed the bullish line on one of these charts |LTCUSD on TradingView.com
Litecoin Elliott Wave and Final Promotion
Litecoin specifications, according to the Elliott Wave Principle, can also point to much higher prices. The current wave count and Fibonacci retracement levels are typical of an expanding diagonal pattern.
These patterns appear at the beginning or end of a driving wave. Given more waves, this suggests the end of the widening diagonal and possibly Litecoin’s last major rally in a while.
Is this the ending diagonal?|LTCUSD on TradingView.com
LTC fundamentals support growth
Finally, the number of LTC transactions is currently skyrocketing. From a fundamental point of view, this is optimistic for any cryptocurrency. Litecoin is benefiting from the explosive growth of serial numbers in the LTC-20 standard, congestion in bitcoin and ethereum, and much more.
Network transactions skyrocket |LTCUSD on TradingView.com
Basically, the Litecoin ecosystem is booming again. When network usage spikes, LTCUSD goes up in value dramatically. We also have yet to mention the Litecoin halving, which is less than 80 days away.
A mega thread 🧵on why I am more bullish on #litecoin than any other asset in the space starting with what I believe is cyclical perfection using Hurst Cyclical theory
Internal 1/3 harmonics match up with a larger cycle, which also has 1/3 harmonics
I see the grand finale next pic.twitter.com/cAh5CrnlUZ
— Tony “The Bull” (@tonythebullBTC) May 16, 2023