This year has been full of ups and downs for Litecoin, the silver to Bitcoin’s gold. Not long ago, Litecoin had established itself as a top-10 cryptocurrency. It’s ranking, on the other hand, has plummeted in recent weeks. In reality, LTC ranks 13th on the rankings at the time of publication.
The value of the alt has dropped by 6% in the last month and 43.57 percent in the last three months. Although it is famous that silver tarnishes with time, is this also true of Litecoin? So, let’s take a look at the present status of crypto to arrive at a decision.
Coin Liveliness is a critical indicator for determining the overall market trend. This is mostly the ratio of Coin Days Destroyed to Coin Days Created. When long-term HODLers sell their positions, liveliness rises, and it falls when they accumulate or HODL.
HODLing behavior has clearly dominated the market, as seen by the chart given hereunder. In general, this is a good indicator. Based on the characteristics of the liveliness curve, this phase would last a few days longer. As a result, Litecoin has nothing to be concerned about at this time.
Ratio:SOPR & MVRV
Both the SOPR (spent-output-profit-ratio) and the MVRV (market-value-to-realized-value) are important indicators for determining an asset’s accumulation range. By dividing LTC’s market capitalization by its realized capitalization, the MVRV is determined.
A critical reversal zone appears whenever this ratio falls below one. Litecoin was hanging around the 0.86 area at the time of publication. This was, to some extent, an indication that Litecoin would enjoy a price increase in the coming weeks.
A value smaller than one, on the other hand, indicates that the coin’s price is undervalued. Most individuals would lose money if they sold their holdings at this point. Nonetheless, for long-term investors, this “cheap” form of LTC is a good place to start.
Litecoin is ready for new players
Furthermore, the SOPR, with a value of 0.94 at the time of writing, remained below one. While this ratio emphasizes the magnitude of realized profits/losses, its press time level signaled that selling pressure was easing and that sellers would soon capitulate.
In reality, this has increased the chances of LTC’s price rising in the following weeks. The aforementioned SOPR level suggested that LTC’s pricing range was suitable for new entrants to the market.
Furthermore, Coinbase was only registered as an exchange service provider by Japan’s Financial Services Agency (FSA) a few days ago. The only five cryptocurrencies (BTC, ETH, BCH, and XLM) that have been authorized by the authority are Litecoin and Bitcoin Cash. Litecoin’s price may benefit from this development in the long run.
Nonetheless, LTC’s ecosystem-focused growth delays for a long time. Despite the fact that MWEB is on the way, some individuals have begun to associate the term “abandoned project” with it. As a result, the alt’s long-term prospects must have protection in the next weeks.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”