Litecoin Investors Await Halving Event with Excitement: Will the Bullish Trend Continue?

  • According to recent data analysis, whenever LTC’s MVRV (30d) ratio has surpassed the 30% threshold since 2018, the price of LTC has observed an average drop of 41%.
  • Built on the proof-of-work (PoW) network, Litecoin has gained stable momentum over the past week, and investors are eagerly anticipating the chain’s third halving event.
  • According to Santiment data, LTC’s NPL (Network Profit/Loss) dropped to -$44.04 million on June 30, and subsequently, the altcoin’s price began to rise.

The Litecoin community eagerly awaits the day of the network’s third halving event. In the meantime, the price rally in Litecoin is increasing the MVRV ratio.

Litecoin’s Recent Rally Pushes MVRV Ratio Above 30%

litecoin-ltc

In the past week, Litecoin (LTC) has experienced a double-digit price rally, pushing the Market Value to Realized Value (MVRV) ratio above 30-day moving average. This occurrence is typically characterized by a subsequent price drop for LTC.

According to recent data analysis, whenever LTC’s MVRV (30d) ratio has surpassed the 30% threshold since 2018, the price of LTC has observed an average drop of 41%. Santiment data indicates that this metric reached 36.25% on July 2 and has since declined to the current level of 26.38%.

litecoin-mvrv-ratio

Built on the proof-of-work (PoW) network, Litecoin has gained stable momentum over the past week, and investors are eagerly anticipating the chain’s third halving event.

This anticipation led to Litecoin, the native currency of the network, establishing a low point of $85 in the second quarter of the year. This event marked the exit of “weak hands” and the entry of “smart money,” resulting in a 20% increase in LTC’s value.

An evaluation of the network using the Network Profit/Loss (NPL) metric also confirms this trend. This metric captures periods on the network when daily changes in addresses indicate either profit-taking or relinquishing ownership.

According to Santiment data, LTC’s NPL dropped to -$44.04 million on June 30, and subsequently, the altcoin’s price began to rise. While still exhibiting upward momentum (albeit weak at present), LTC’s “smart money” activity continues to have a noticeable impact.

litecoin-realized-profit-loss

Important Metric to Consider for LTC…

Another significant metric to consider here is Age Consumed. On June 30, LTC unexpectedly reached a level of 438.91 million in the Age Consumed metric. This indicates significant movement of idle LTC coins to new addresses and suggests a notable change in long-term investors’ behavior.

litecoin-age-consumed

It is a commonly known fact that long-term holders of an asset do not randomly transfer their assets to new addresses. Therefore, the reactivation of stagnant coins is often associated with significant changes in market conditions and signifies a local price bottom.

The fact that LTC’s price rose following a sudden increase in Age Consumed indicates the beginning of a new bullish cycle before the halving event.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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