There is just a handful of Litecoin (LTC) that is left out to be mined as the coin price approaches a major technical breakthrough. With the supply running dry and the coin almost completing the bullish pattern, there could be a spike in prices.
Litecoin, which is a fork of Bitcoin, is now approaching a critical point on the charts. The coin approaches a breakout point as its limited supply of 84 million has only 9% of the supply left to be mined.
With 91% of the market supply already mined, the crypto community thinks the coin is not vulnerable to huge price swings, since the rest of the supply will become available over the next 100+ years.
Supply alone does not dictate price stability
Although the community expects the price swings to be minimal, LTC, which follows BTC prices closely, tends to sometimes swing with percentage moves in tandem with BTC.
It’s seen as a rotation play when capital flows from BTC into large-cap altcoins. As such, though 91% of supply is mined, price volatility comes from demand shifts, not just new supply. Therefore, it is very difficult to limit volatility to a minimum.
LTC is bound to rebound from $54
On price charts, Litecoin is approaching a critical point as it trades inside the symmetrical triangle pattern. The coin has been making lower highs and higher lows, alternatively rebounding off the upper and lower trendlines, respectively.
This has been going on for the past 9 years. Now that the coin has crashed for support to the lower trendline ($54), it should naturally rebound and rise towards the upper trendline, given that it follows the pattern.
In the event LTC rebounds and travels towards the upper trendline, the coin is well-positioned to hit a value above three digits. However, it will take time for the coin to hit these values, as the Relative Strength Index does not show favorable conditions.
