Cryptanalyst firm Santiment believes Litecoin’s rapid rise to new local highs has put the asset in dangerous trading territory.

In a recent market update, Santiment provided several useful indicators for tracking the price movement of Litecoin and assessing the general health of the network.

The analytics firm notes that Litecoin is in a “danger zone” as short-term traders can now take profits. Santiment uses the 7-Day Market Value to Realized Value (MVRV) indicator, which shows the average profit / loss of all coins in circulation at current prices.

“LTC’s MVRV 7D, which measures investors’ short-term gains / losses, shows that LTC is in the danger zone as all short-term traders are currently taking profits – which could encourage them to make some profit.”

The source: mood

In September, LTC hit a monthly low of $ 140 before rising more than 100% to a new local high of $ 295. At the time of writing, LTC is trading at $ 257.79.

Santiment also noted that Litecoin price appears to have caught up with Bitcoin’s (BTC) relative gains since September lows.

“One interesting thing is that LTC price has been closely tracking BTC … this also means that LTC is not a strong altcoin as it shows no strength when BTC is falling in price, mostly BTC. Drag it with you.”

The source: mood

While Santiment expects Litecoin to consolidate, the company says an on-chain indicator will signal the strength of the LTC network.

“LTC daily active addresses have grown over the past 3 months (even with a massive drop in September) which is great as we usually see this on a healthy network. It has seen a surge in DAA recently as prices rebounded and haven’t seen a major decline, so far so good. ”

The source: mood

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According to Dailyhodl

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