Historical data is never a guarantee of future results. However, Litecoin’s (LTC) price action is currently reminiscent of late 2016 and early 2017, just before the epic 100x rally. In addition, it will go through its third halving cycle in August. Can altcoin fly with these developments?
Litecoin returns with 100x signals: Altcoin bulls lay the groundwork
The 100x signal in question comes out with the 9-day Bollinger Bands and Bollinger Bandwidth. Bollinger Bands are the second tightest band in Litecoin history. This metric is a volatility tool that uses a simple moving average and two standard deviations.
Bands widen at high volatility and narrow at low volatility. A low volatility situation called a squeeze always ends with a significant move. It then turns into a shocking burst of volatility. However, volatility is only a measure of the price distribution over a period of time.
Also, the Bollinger Bandwidth has been narrowing lower for six full years. If the downtrend pattern is broken, the biggest move of a half-decade could come. As crypto analyst Tony “The Bull” puts it:
Litecoin’s volatility has been contracting for six years. Lowest volatility since LTC in 2017 from $3 to $300 (100x). Those who are patient will be rewarded. The longer it takes, the greater the movement. When it starts, it will be a sight to behold.
Weeks away from the next Litecoin halving
Litecoin price rose 5% on July 11 to retest $100. However, historical data shows that LTC will most likely bounce back as the halving date approaches. The highly anticipated third halving is scheduled to take place on August 2, 2023.
On the other hand, historical data reveals Litecoin’s extraordinary “price down” trend in the weeks before the previous halving cycle in 2015 and 2019. Ahead of Litecoin’s first halving in 2015, the price of LTC surged to $7.54 on July 10. It then fell 42% to $4.40 on the August 5 halving date.
A similar pattern occurred in the 2019 cycle. LTC price surged to $142 on June 23, 2015 and fell 53% to $93 on the August 5 halving date. The post-halving downtrend continued for several months before Litecoin entered another rally in January 2020.
Altcoin miners run out of reserves ahead of halving
After gaining 300,000 LTC in June, Litecoin miners started depleting their LTC reserves in July. IntoTheBlock data shows that between July 5 and July 11, Litecoin miners sold 90,000 LTC.
Meanwhile, Litecoin’s hashrate also recorded a drop reflecting miner exit. The same trend continued to apply to Litecoin’s falling miner revenues.
cryptocoin.comAs you follow, Litecoin became the most used cryptocurrency for payments last week, while recording a decline in the above metrics.
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