Mapping whether Litecoin is really undervalued right now
Journalist
Posted:
- After a quick correction, LTC climbed marginally over a 24-hour interval
- Market indicators appeared bearish whereas the mining sector thrived
After climbing near the $80-mark, Litecoin [LTC] registered a value correction, one which may be attributed to the bearish market. Whereas that occurred, ought to buyers consider that Litecoin is definitely undervalued even after the value correction?
Is Litecoin undervalued?
For Litecoin, the earlier week was tough because it noticed a serious drop in value on the charts. In keeping with CoinMarketCap, LTC’s every day chart was inexperienced, with the crypto appreciating by 1.5% in 24 hours. On the time of writing, it was buying and selling at $73.16 with a market capitalization of over $5.4 billion.
Contemplating the continuing value correction, ought to buyers count on LTC to be undervalued? To evaluate the identical, AMBCrypto dug deeper and checked LTC’s reserve danger. For starters, when confidence is low and value is excessive, then danger or reward is unattractive at the moment (reserve danger is excessive). As per the identical, Litecoin’s reserve danger registered an uptick on the charts – An indication that it was overvalued.
Supply: Glassnode
Quite the opposite, Shan Belew, a preferred Litecoin analyst, instructed that LTC was undervalued. In keeping with him, so long as LTC’s value stays beneath the white strains (as seen within the tweet), LTC will stay undervalued.
Litecoin beneath the white strains is undervalued. pic.twitter.com/RrFx9gUgpD
— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) December 11, 2023
What to anticipate going ahead
AMBCrypto additionally took a take a look at LTC’s social metrics to higher perceive investor sentiments. As per the identical, LTC’s reputation dropped, as is clear from the decline in its social quantity. Its weighted sentiment additionally sank final week, that means that adverse sentiments dominated the market.
Supply: Santiment
We then had a take a look at the blockchain’s every day chart to see what buyers may count on from LTC and have a greater understanding of whether or not LTC is undervalued or not.
At press time, Litecoin’s MACD projected the opportunity of a bearish crossover within the close to time period. Each LTC’s Cash Stream Index (MFI) and Chaikin Cash Low (CMF) registered downticks, growing the probabilities of a value drop within the days to return.
Supply: TradingView
How a lot are 1,10,100 LTCs price as we speak
A thriving mining business
With the crypto’s value was within the grip of a bout of volatility, its mining business grew. That is evidenced by the truth that its hashrate registered an uptick after a downtrend on 4 December.
At press time, LTC’s hashrate stood at 859.48 TH/s. Just like the hashrate, Coinwarz’s data revealed that Litecoin’s mining problem additionally remained comparatively excessive, with the identical flashing a studying of 28.62 M.
Supply: Coinwarz
