Litecoin investors may be planning coordinated sell-off as addresses on network are growing pre-halving
One of the most anticipated network events in the digital currency ecosystem today is the forthcoming Litecoin (LTC) halving, scheduled to take place in early August. Drawing on the hype that has accompanied the halving event over the past few months, on-chain analyst @Ali_Charts has hinted that the network event may turn out to give a different result than expected.
#Litecoin | Each time the number of new $LTC addresses surpassed 350,000 in the last five years, a significant price correction followed.
More than 690,000 #LTC addresses were recently created, suggesting the upcoming #halving could be a “sell the news” event. pic.twitter.com/FBsokPgaYA
— Ali (@ali_charts) July 23, 2023
In the theory he presented, the halving event may be a “Sell the News” event. He noted that a growing number of new addresses are being created on the network, with more than 690,000 of these addresses created recently. Per his observation, a significant price correction is known to follow each time the number of new Litecoin addresses surpassed 350,000 in the last five years.
Based on this reasoning, he believes Litecoin investors may be waiting for the right avenue to sell their bags following the projected price surge in LTC post-halving.
In the past few weeks, many have predicted that Litecoin is set to record immense price growth as the deflation the halving will bring, coupled with the growing demand for the coin, will serve as a perfect basis for price growth in the mid- to long term.
Litecoin halving: A dual outcome event
The upcoming Litecoin halving can have a dual outcome with a probable sell-off or massive accumulation as users and investors duly price in the impact as time goes on.
The outcome of Litecoin halving after the event will help investors in the community build the right momentum toward that of Bitcoin, scheduled to take place next year in April.
As a proof-of-work (PoW) protocol, both Litecoin and Bitcoin share the same fundamentals and, as such, what works for one might be a proper gauge of the ecosystem perception for the other.
Source: https://u.today/litecoin-ltc-halving-may-be-setup-for-sell-off-heres-why