@Bharti 17 August 2020

Litecoin Prepare to Breakout

It’s been just over 3 months since at the time a single Litecoin was valued at $46. Bac prediction based on chain trend analysis comparing transactions and market price in an attempt to find a fundamental stable value. *“This ratio is roughly 600 Txs : 1 USD with an acceptable error drop off of around +-30%. Yes, that is a significant value but in relation to volatility this would put the current Litecoin upper and lower bounds at $61 and $33 respectively.* *If we continue to see this steady increase in transaction usage on the network we should likewise expect to see price follow.”* Well prices now sit at just over $61 and is right under the logarithmic multi year down trend that began in 2017 as well as the horizontal resistance of ~$65. Considering recent trends in the crypto space, I am looking for a confident and solid breakout to the upside. TX:Price ratio analysis, is currently undervaluing the network based on my methodology. As of writing, the daily network transactions have risen from ~~20,000/day to~~ 45,000+/day, a drastic increase which gives us the lower, middle and Upper bounds of $52.5, $75 and $97.5 respectively. *“Anything outside these bounds and price can be considered overvalued or oversold fundamentally.”* We have not seen sustained network usage at this level since the beginning of 2018, the main difference being back then price was incredibly over valued according to TX:Price ratio, likely indicating that the network has adequately matured 3 years on to hold these prices. The activity Litecoin is seeing has been sustained and growing at a steady rate alongside the rest of the market, so i see no cause for concern at these levels. Upon a breakout, the only resistance Litecoin will have left is horizontal levels, the first of which is at $81 and the second at $140. Assuming trends continue it looks like Litecoin will be on track to revisit the triple digits once more before the end of 2020 and this time hopefully permenantly.