On-chain Expert Predicts Litecoin Price Crash Ahead of Halving
- The last time Litecoin had this type of problem was from August 2021 to January 2022.
- The expert implied that the impending halving would be a good opportunity to make a sale.
The Litecoin (LTC) halving, set to occur in early August, is currently one of the most awaited events in the crypto industry. On-chain expert @Ali_Charts has speculated that the event may have an unexpected outcome, drawing on the anticipation around the halving event over the last few months.
#Litecoin | Each time the number of new $LTC addresses surpassed 350,000 in the last five years, a significant price correction followed.
— Ali (@ali_charts) July 23, 2023
More than 690,000 #LTC addresses were recently created, suggesting the upcoming #halving could be a "sell the news" event. pic.twitter.com/FBsokPgaYA
The crypto researcher speculated that the number of Litecoin wallet addresses had grown significantly in recent times. This may be an ominous indication for the LTC price, which may soon experience a precipitous decline.
Impending Sell-off Ahead?
The data shows that in the last five years, whenever the number of LTC addresses surpassed 350,000, the price of LTC dropped significantly. The last time Litecoin had this type of problem was from August 2021 to January 2022. On-chain data implies a significant price crash as LTC miners prepare for the effect of the block reward halving.
Ali pointed out that in anticipation of the halving event, which will take place in the next 8 days, more than 690,000 LTC addresses had been generated lately. He implied that the impending halving would be a good opportunity to make a sale. Possible outcomes include increased selling pressure and transient price changes.
He concludes that Litecoin investors may be holding in expectation of the anticipated price spike in LTC after the halving. A sell-off or enormous accumulation are both possible outcomes.
On the other hand, the upcoming halving of Litecoin’s supply might lead to significant price appreciation. This view is grounded on the deflationary impact that the halving will have. Since the creation of new coins will slow down. If this trend continues, together with rising demand for LTC, it might be a recipe for sustained price appreciation over the medium to long term.
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
