The next Litecoin (LTC) halving, expected for early August, is one of the most anticipated network events in the current digital currency ecosystem. On-chain expert @Ali_Charts has made a suggestion that the network event may have a different outcome than anticipated by drawing on the anticipation that has surrounded the halving event over the previous few months.
According to the idea he put forward, the occurrence of the halving may be a “Sell the News” event. More than 690,000 of these new addresses were just recently formed, he said, adding that an increasing number of new addresses are being produced on the network. He noticed that in the previous five years, if the number of new Litecoin addresses exceeded 350,000, a big price adjustment was known to occur.
This justification led him to the conclusion that Litecoin investors could be holding off on selling their holdings in anticipation of the anticipated price increase for LTC following the halving.
Many have predicted in recent weeks that Litecoin will experience tremendous price increase because the deflation that the halving will bring, along with the rising demand for the currency, will provide the ideal foundation for price rise in the medium to long term.
Litecoin halving: A dual outcome event
The approaching Litecoin halving might result in a sell-off or a major accumulation, depending on how users and investors appropriately price in the impact over time.
The outcome of the Litecoin halving after the event will aid investors in the community in generating the proper momentum for the Bitcoin halving, which is planned to occur in April of next year.
Given that both Litecoin and Bitcoin are proof-of-work (PoW) protocols, what works for one may be a good indicator of how the ecosystem feels for the other.
