Litecoin’s historical price movement, as correlated with the creation of new addresses, appears to be particularly crucial at this time. The historical data reveals that whenever a significant number of new addresses were established, the price tended to experience a massive downside movement.
In a recent observation by Glassnode, an on-chain analytics firm, it was noted that in the last five years, whenever more than 350,000 new Litecoin ($LTC) addresses were created, the price of Litecoin dropped significantly afterward. Recently, over 690,000 new LTC addresses were generated, which suggests that when the upcoming halving event occurs, people might sell their LTC due to the news of the halving. This observation was also tweeted by an individual named Ali on Twitter.
In a report by Todayq News on July 19, 2023, it was mentioned that Litecoin (LTC) whales have accumulated around 590,000 coins worth approximately $59 million, indicating a strong demand for Litecoin.
With only 9 days left until the Litecoin halving event, heightened interest in cryptocurrency has been sparked. Recently, Intotheblock, an on-chain analytics firm, revealed data showing that Litecoin’s search interest has reached its highest point in a year. Media sources attribute this surge to the upcoming halving event.
This situation may need clarification for investors. Historical data shows that after creating more than 350,000 new addresses, the Litecoin price tends to experience downside movement. However, despite this, whales and investors are still accumulating Litecoin.
Another crucial factor to consider before entering into Litecoin is the technical analysis. Currently, Litecoin is at an important level. Based on price action, it is consolidating in a tight range between $90.00 and $95.70 for the last ten days. Moreover, it is also trading above the 200MA, which is considered a positive sign. On the 4-hour time frame, it is evident that Litecoin is trading within a narrow zone, of a descending triangle pattern, facing resistance from both the 200MA and a trendline.
A potential bullish movement may occur if there is a breakout of the trendline and the candle closes above $95.70 on the 4-hour time frame. Conversely, a breakdown of the support level and a candle closing below $90.00 may lead to a downside movement. Therefore, it is crucial to keep a close eye on these important price movements of Litecoin.