Posted:
- After a short 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 worth correction, one which might be attributed to the bearish market. Whereas that occurred, ought to traders imagine that Litecoin is definitely undervalued even after the value correction?
Is Litecoin undervalued?
For Litecoin, the earlier week was tough because it noticed a significant drop in worth on the charts. In response to 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 continued worth correction, ought to traders anticipate LTC to be undervalued? To evaluate the identical, AMBCrypto dug deeper and checked LTC’s reserve danger. For starters, when confidence is low and worth 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, steered that LTC was undervalued. In response to him, so long as LTC’s worth stays beneath the white traces (as seen within the tweet), LTC will stay undervalued.
Litecoin beneath the white traces 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 obvious from the decline in its social quantity. Its weighted sentiment additionally sank final week, that means that destructive sentiments dominated the market.
Supply: Santiment
We then had a take a look at the blockchain’s every day chart to see what traders may anticipate 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 Circulation Index (MFI) and Chaikin Cash Low (CMF) registered downticks, rising the possibilities of a worth drop within the days to come back.
Supply: TradingView
How a lot are 1,10,100 LTCs price at this time
A thriving mining trade
With the crypto’s worth was within the grip of a bout of volatility, its mining trade 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 issue additionally remained comparatively excessive, with the identical flashing a studying of 28.62 M.
Supply: Coinwarz