Litecoin (LTC) is one of the oldest coins in the crypto space and it never makes as much noise as you might expect. There weren’t many frenzied protests or catastrophic break-ins. There was a FUD with Walmart recently, but you can’t really blame Litecoin for that, can you?
Some believe this immobility may have protected investors. However, it currently costs LTC quite a bit because of the risk of kicking.
Litecoin in danger …
… fell to an all-time low?
LTC has not been able to keep up with the rise in Bitcoin’s price. And as a result, he faces major corrective action.
While Bitcoin hit a new all-time high (ATH) of over USD 67,000 less than 48 hours ago, the LTC / BTC pair has now been falling for over 3 years. Oddly enough, this is still the case, despite the fact that LTC is up 42% this month.
Litecoin performance this month | Source: TradingView
Well, in some ways, this week’s performance might actually have helped LTC.
LTC / BTC is already at 0.003 sats, and a drop below that level will drive LTC into pricing at all-time lows.
LTC / BTC price chart | Source: TradingView
In addition, LTC is also a very attractive asset for investors in the market. The likelihood of a rebound from this point is quite high, with this week’s price action LTC / BTC possibly helping to bounce back from this support.
Should You Invest in LTC Now?
The reserve risk indicator (a cycle indicator that shows the risk / reward ratio in relation to the trust and confidence of long-term investors) has been in an attractive range for LTC for more than 2 years. In addition, it has held every rally and drop in this range except for one in 2018.
Back then, Litecoin was considered unattractive for almost a month due to its high price and low investor confidence.
Litecoin-active address | Source: Glassnode
This view is also supported by the Sharpe ratio. At press time, it’s at a monthly high, making LTC a risky asset.
On a micro-scale, investors did not reciprocate this week’s price hike. Instead, the owners sold over $ 5.03 million in long positions that were liquidated during the week.
Litecoin amount liquidated | Source: Coinalyze
While the volume isn’t particularly high, investors have been very active since active addresses arrived at ATH this week.
The good thing is that the dominance of medium-term holders protects LTC from any volatility, at least on a 5-month average. And the dominance of retail investors also prevents a quick sale or major dumping, making it a safer asset.
Litecoin is distributed by investors | Source: Intotheblock
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AMBCrypto