Litecoin is showing signs of an impending rally in 2022, linked to the number of active addresses, similar to a pattern seen in 2017. However, the Reserve Risk and MVRV-Z metrics indicate an oversold state rather than a down state. overbought, painting a somewhat ambiguous state. outlook for 2022.
Litecoin is showing signs of another uptrend, closely mimicking other uptrends that occurred in November 2013, where the price jumped from $ 5 to $ 63 in a matter of weeks. In December 2017, the price rose from $ 50 to $ 369, amid increasing demand. Recent measurements by the chain indicate a general upward trend. The number of addresses has seen a parabolic upward trend since December 2020, which appears to correlate with the upward trend in price from $ 129.94 on December 31, 2020 to $ 377.69 on May 12, 2021. The number of active addresses recently showed a strong spike, similar to that seen in April 2021. The seven-day moving average showed a peak of active addresses on October 10, 2021.
This is similar to when the number of active addresses reached 16,961 on April 8, 2013, LTC cost $ 4.50. On November 12, 2013, saw an increase to 18322. After that, the price climbed to $ 95 on November 28, 2013. The seven-day moving average of active addresses peaked on May 16, 2017, after which LTC rose from 23 , $ 50 at a cycle. High of $ 369 on December 17, 2017. Other indicators like LTC’s reserve risk ratio and its Z MVRV score paint a different picture, indicating that Litecoin has been oversold and not overbought. An overbought condition suggests that there has been a significant and consistent uptrend with minimal pullback. An oversold condition is a condition where the price of a coin has shown a constant downtrend, with minimal correction. There were two times that reserve risk indicated an overbought state, and a rally followed. Currently, the reserve risk is below 0.003, indicating an oversold condition. The MVRV Z-score is a way to measure whether Litecoin is undervalued or overvalued relative to its fair market value over time. The current MVRV Z score is over two and must reach seven to be considered overbought.
Brief overview of Litecoin’s price behavior over the past four years
Historically, 2016 has been the least hectic year for price movement, with the price increasing only 27%, ending the year at $ 4.36. 2017 was the most bullish in Litecoin price history, with bullish candlesticks created almost every month. By the end of the year, it had increased by 5,451%. In 2018 Litecoin had a bearish conclusion every month and declined to $ 30.62 by the end of the year. The year 2019 saw a high of $ 146.95, but ultimately the year ended, only seeing a 33.7% increase over the course of the year.
Litecoin’s market cap at the time of writing was around $ 13.3 billion and its price was $ 188.79.
Litecoin against Bitcoin
Litecoin was recently supported by BitPay and accepted in AMC theaters. Litecoin was created as a fork of Bitcoin in 2011. Similar to bitcoin, Litecoin is deflationary, with a maximum of 84 million coins that can be minted. Litecoin has a faster block time of 2.5 minutes, compared to Bitcoin’s 10 minutes. Litecoin has a less complex validation method than bitcoin, although it also uses Proof-of-Work.
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