The LTC price will increase in the short term with this condition
The LTC price has had its ups and downs this month. So far, however, the downward movement on the chart has been more pronounced than the upward movement. Accordingly, the decline in market capitalization is inevitable. This altcoin used to be in the top 10 but is now in 17th place at the time of writing.
May LTC traded well below $ 200 with one exception. In fact, the current condition is even worse with the retail price of $ 151.
LTC 4 Hour Price Chart | Source: Tradingview
According to the price chart, the percentage of the LTC increase seems to be quite small, but the status of the indicators suggests a rather opposite trend.
Has the pressure to sell come to an end?
The market value-real value ratio (MVRV) has fallen since the first week of September, the indicator has been around 1. Despite the downward trend, the graph below clearly shows the current levels, which are much higher than from June to July. Overall, this shows that the HODLer is making more money than at that time.
MVRV rate | The source: Glass knot
On the other hand, the spend output return (SOPR) rate has stayed below 1 since September 17th. While this ratio highlights the true amount of profit / loss, a value below 1 suggests that selling pressure may be coming to an end and sellers will quickly capitulate.
Should such a situation continue in the coming days, the uptrend for LTC will be higher. The liveliness index has also fallen since September 15th. Usually this is the ratio between the number of days a coin is destroyed and the number of days a coin is created. The indicator rises when long-term HODLers liquidate positions and falls when they accumulate or HODL.
As can be seen from the graph, the HODL behavior has dominated the market. This is usually a healthy sign. Given the slope of the curve, it can be said that the current trend will continue on its own for the next few days.
Liveness index | The source: Glass knot
While the above indicators are positive, it should be noted that LTC price rarely moves without Bitcoin support. The current correlation between these two coins is pretty high. Hence, the LTC price may only go up as the broader market begins to rebound.
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According to AMBCrypto