Does Metric really draw a bullish picture of Litecoin?

Does Metric really draw a bullish picture of Litecoin?

Litecoin’s pricing behavior more or less reflects that of July’s broader cryptocurrency market. However, it is worth noting that the Alto’s loss margin was much lower than some of the other major Altos on the market.

Litecoin recorded a decent spike in trading volume (highest in July) on July 20, after testing low long-term support of $ 109. However, trade volumes were still well below May-July levels. In addition, altcoin after vibrating in the oversold zone emphasized the rise.

This emergence from an extreme oversold situation and the emergence of dip buyers have prompted a better outlook for LTC over the last few trading sessions. In fact, on the 4-hour chart, Altcoin not only recorded a rise in price, but also recovered from the oversold zone.

Do the indicators tell a bullish story?

A recent Santiment report highlights that the amount of unique addresses that interact with LTC has increased by 47.5% over the last 10 days, despite a recent 13.8% price drop. further, Recent articles He also noted that Litecoin was third in the top five on the sentiment chart last week with a score of 33.

Source: Santiment

After rejecting the 4200 sats level, LTC on the LTC / BTC chart has returned to support, so the possibility of a further decline is not impossible. However, LTC has recorded some minor profits, and if that continues, Altcoin’s recovery may be awaiting. Among them, the 365-day MVRV ratio was -39%, which was almost the same level as marking the bottom of 2019/2020. The report further said,

“Historically, there’s still plenty of downside, but it’s interesting to see if -40% will be seen as a de facto’bounceback’zone in the next few days. “

Source: Santiment

In addition, addresses holding 1k to 100k LTC increased their holdings by 270,000 LTC.

However, given the low volume of transactions, low social sentiment and low Alto dominance, it is too early to conclude that Litecoin is fully recovering.

Source: Santiment

So does this mean that Litecoin looks healthy?

Most of the indicators seen above depict a fairly healthy picture of Litecoin, but in the case of Alto, it cannot be ignored that their development activities and social dominance also play a major role in their rally. ..

LTC development activity recorded a downtrend on July 16th. And it was well above the level from the end of April to July, but still well below the ATH in April. The social dominance of the coin didn’t look very good either, and he recorded a down tick at the time of writing.

Source: Sanbase

At this point, Litecoin is showing a more neutral outlook rather than a bullish outlook. However, if the healthy spikes in daily addresses continue to grow, it can prove good for your network. Sustainable growth in the same is a rare example of network strength between crypto top caps.

Leave a Reply

Your email address will not be published. Required fields are marked *