Over more than 10 years until now a clear pattern has emerged in the Litecoin price chart that tells us many things about its future value and how LTC will evolve in the next coming years.
To provide an overview, this is the current LTC/USD chart:
The white trend lines clearly indicate that the events of 2017, when Litecoin saw a significant increase following a 2-year accumulation phase, might repeat themselves. Currently, LTC appears to be breaking through a similar accumulation pattern, but this time it's part of an 8-year cycle.
The same breakout as in 2017 is currently happening again just on a much larger scale than before. But thats not the tip of the iceberg…
There is one skipped cycle caused by very high selling pressure that comes from the miners. Since Litecoin reached its new all time high in 2021, one or more certain digital mining companies are depleting millions of LTC and selling their whole reserves constantly on the market.
The 3-forces graph that explains everything:
F1 = Transaction Volume
F2 = Miner Reserves
F3 = Litecoin/USD [F1 + F2]
[Notice: F1, F2 & F3, are self-created definitions based on the law of force]
F1 is showing all transactions on the Litecoin network on a given day which is one big catalyst of the whole LTC network value.
F2 consists of the Litecoin reserves all the miners are holding.
F3 is the LTC/USD price chart which is influenced by F1 & F2 directions.
All the three charts were correlated in the past and growth was always the same but since the last all time high in 2021 something changed:
F2 chart (miner reserves) creates a lot of down pressure while
F1 (transaction volume & network growth) pressing up.
That means there are two opposing forces having impact on the price.
When one is pressing up and one is pressing down then it’s just logical that LTC price moves sideways and is caught in the middle.
That’s also the reason why Litecoin skipped one cycle and moves at similar all time lows like it does before 2021.
Technically, Litecoin is significantly undervalued, and we would observe much higher prices if miners chose to hold rather than sell, given that Litecoin adoption is rapidly increasing in the background.
However, it's very encouraging that the significant sell-off by heavy miners over the past four years is nearly complete, and their reserves are depleted.
They have almost nothing left to sell which means that the force F2 and it’s down pressure will disappear.
In conclusion, the Litecoin price has the potential to increase significantly in a short timeframe. This would allow LTC to recover the gains missed from the previous cycle while simultaneously rising in the current cycle. This, coupled with a new altcoin season, could result in a highly parabolic surge.
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