3 months ago, we made money on this coin $LTC due to the halving, where we calculated the peak of growth and the beginning of the fall of the coin with an accuracy of the day.
After this deal, we wrote that after halving the coin would eventually reach $45-60 per coin.
📉As a result, the price reached this mark having lost a little less than -50%.
Also, we promised to publish a new forecast for the coin in a few months, where we will consider the price behavior after halving.
And now that time has come!
🤔 How does LTC behave after halving?
As last time, let’s look at a chart with the history of all trading on a coin. After halving, historically this coin goes through 4 cycles:
1. Side panel
A completely logical period that comes immediately after halving, since the price needs to gain strength for new movements.
In 2015, the sideways trend lasted 224 days; in 2019, it lasted 126 days.
If you believe the trend, then in our time the sideways trend will last even less time, let it be 70 days, which have already passed.
2. Short-term growth
This period appears to be set in motion to unload passengers who were shopping at the side.
in 2016 this growth was +86%, in 2020 the growth was +133%. This year we do not expect more than +90% growth from current levels.
As a rule, this growth occurs before the price peak before halving. Apparently, those who bought at these peaks are starting to sell positions in this zone. This is followed by a return of the price to the levels of the previous sideways period.
3. Repeated sideways
Let's call this period a depression, where large companies are again gaining ground, while others are selling at breakeven, having been disappointed in the slight growth of the previous period.
This flat market historically lasts longer than the flat market of the first period, but prices are already higher.
4. Explosive growth
We think here without comment. After a long 3 past periods, positivity sets in and the coin flies into space.
Obviously now is a good opportunity for both long-term and short-term purchases.
📈 Short-term prospects for Litecoin
As we wrote above, we are now close to entering a period of short-term growth for this coin. In the worst case, you will have to wait another month and a half, which is not long enough.
Let's get down to technique:
1️⃣ The coin is moving within the medium-term ascending channel and is now at the lower border of this channel.
2️⃣ Almost along the lower border of the ascending channel there is a long-term ascending trend line (thick green line). This trend has kept the price falling lower for more than 4 years!
3️⃣ High trading volume, unlike Bitcoin
4️⃣ Profile volume shows high interest in this coin at current levels
5️⃣If you do not take into account the shadows of the candles, then a bullish extended divergence has been formed on the chart
6️⃣ The price is below long-term moving averages, including below MA200w. As you already understand, below this moving average you can safely buy fundamentally strong assets.
7️⃣ The MACD indicator has just entered the green zone.
Bottom line: Litecoin is interesting for purchases at current prices; you don’t even have to set a stop and in case of an emergency you can simply average the position.
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