- Decentralized peer-to-peer cryptocurrency LTC’s MVRV Ratio has risen significantly in recent days.
- More than a TRILLION dollars has been moved on the #Litecoin network.
- A few market indicators, however, were bearish.
Recently, Litecoin [LTC] has outperformed the majority of other cryptocurrencies, recording over 9% increases in just one day. This was a positive spike that raised the prospect of a subsequent rise in its price in the days to come.
Interestingly, Litecoin was included as one of the top five bullish tendencies on the BTC pair in a tweet that was just published by the cryptocurrency monitoring platform DYOR.net.
The price of LTC has increased by over 16% in the last week, according to CoinMarketCap. Its market capitalization at the time of publication was $5,979,961,633 and it was trading at $83.33.
On-chain data also revealed that the number of Litecoin wallet addresses kept expanding at a constant rate. From 117 million wallets at the beginning of the year to 162 million as of this writing.
Nevertheless, things may soon improve as some on-chain metrics indicate that LTC’s price may decline in the days to come.
Is Litecoin already safe?
The Market Value to Realized Value (MVRV) ratio for LTC significantly increased during the previous week, according to Santiment’s data. This scenario can portend a market top and a subsequent price decrease.
The Binance financing rate for LTC decreased during the past week as well. This suggested that the derivatives market was losing ground.
On November 4, LTC’s transaction count also experienced a dramatic decrease. The same path was taken by Litecoin’s velocity, which decreased, which could be problematic for the coin.
Have bears made it inside?
The bulls were in charge of the market, according to LTC’s daily chart, but a trend reversal was also possible. As an illustration, the Relative Strength Index (RSI) for LTC was crossing into the overbought region, which is a very strong negative indication. Its Moving Average Convergence Divergence (MACD) signaled a struggle between the bulls and the bears.
However, there was some good news on the Exponential Moving Average (EMA) ribbon because the 20-day EMA was higher than the 55-day EMA. Additionally, there was an increase in the Chaikin Money Flow (CMF), which was encouraging for Litecoin.