Will Litecoin Be Able to Breakout Before Bitcoin Halving?

Litecoin (LTC) appears to be at a key point, suggesting a potential trend reversal.

Currently, the Market to Realized Value (MVRV) Z score derived from Glassnode data is at -0.23.

This metric measures the valuation of a given cryptocurrency. Similar readings were seen around February 29, which coincided with LTC trading at the $74.62 level. Within the short span of two days, the coin's value rose to $94.47.

This trend is not unprecedented for Litecoin. In March, despite the negative metric, LTC suffered a price drop to recover to $109.29 just 10 days later.

Currently, the price of LTC is $78.62, with the upcoming halving of Bitcoin (BTC) is outlined within 4 days. Historically, LTC has shown a tendency to spike before major Bitcoin events.

However, before assuming an impending price hike, caution is warranted, necessitating a review of LTC's performance during previous halvings.

In 2016, LTC was trading at $3.19 shortly before the post-halving increase, reaching $4.12 on the day of the event. Conversely, during the halving dip in 2020, LTC remained in the $43-$46 range.

Realized capitalization offers insight into market sentiment. A spike in this metric suggests that coins acquired at lower prices are selling off, potentially leading to a further correction.

Conversely, a decrease in realized capitalization signals perceived undervaluation. Litecoin's one-day realized capitalization currently stands at -49.83 million, suggesting a potential recovery.

If this metric continues its downward trend, the likelihood of an LTC rally before the Bitcoin halving could increase. Conversely, a reversal of the metric's direction can invalidate this prediction.

Despite the optimistic outlook, there remains skepticism among some market participants, as evidenced by the decline in the total number of Litecoin holders according to data from Santiment.