Categories: Market

Santiment warns that Litecoin is in the danger zone after the price spike

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

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

SN_Nour

According to Dailyhodl

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Polymarket User ‘Walletmobile’ Risks $10 Million on Trump’s Victory

Polymarket user identified only as "wallet mobile" has just made an astonishing bet of $10…

1 min ago

Binance CEO Richard Teng: The West Will Still Dominate Finance

Binance CEO Richard Teng stated that Western companies will benefit most due to regulatory influence.

12 mins ago

FTX License Suspension Extended by Cyprus SEC Until May 2025

The Cyprus Securities and Exchange Commission announced that the Cypriot Investment Firm (CIF) FTX license…

40 mins ago

VanEck Pyth ETN Now Available in Europe

The VanEck Pyth ETN, backed by assets stored in cold storage with Bank Frick, has…

1 hour ago

Swift, UBS, Chainlink Complete Pilot for Global Tokenized Fund Settlement Network

Swift, UBS Asset Management, and Chainlink have completed a proof-of-concept that would settle tokenized fund…

1 hour ago

Jambo and Lif3 Partner to Make Crypto Payments Accessible to Millions of Users in Emerging Markets

Abu Dhabi, United Arab Emirates, 5th November 2024, Chainwire

1 hour ago

This website uses cookies.