Crypto Analyst Sheds Light On Litecoin Next Possible Price Move
In a market of ever-changing dynamics, Litecoin (LTC), one of the top-performing cryptocurrencies, is caught in an interesting situation. The digital asset’s price direction has recently been the subject of analysis by a renowned crypto expert, Ali, who is well-known for his crypto predictions and insights.
His analysis, drawn from a key market indicator, the Market Value to Realized Value (MVRV) ratio, may shed light on Litecoin’s immediate future.
Ali’s forecast derives from the 30-day MVRV for Litecoin, which presently stands at around 35%. This metric serves as an instrument for tracking the disparity between the market value and realized the value of the digital asset.
Related Reading: Litecoin Up 18% In Past 24 Hours, Is Halving Rally Here?
Ali’s recent observation adds a significant dimension to the market’s perception of Litecoin, suggesting that history might be gearing up to repeat itself.
The History Of Litecoin MVRV And Price Corrections
As Ali highlighted in a recent tweet, Litecoin’s history since 2018 shows a distinctive pattern. Whenever the 30-day MVRV exceeds the 30% threshold, a sharp price correction ensues. Such corrections have typically led to a decline in LTC’s price ranging from 30% to 40%. This pattern has persisted over the years and lends credence to Ali’s prediction about a possible downturn.
Currently, #Litecoin MVRV 30D hovers around 35%.
Historically, each time $LTC MVRV 30D exceeds the 30% mark since 2018, a sharp price correction typically follows! This usually translates to a #LTC price drop ranging from 30% to 40%. pic.twitter.com/R5oMMaKWGc
— Ali (@ali_charts) July 2, 2023
The rationale behind this is straightforward. When the MVRV ratio is high, it indicates that holders have accrued significant profits and may decide to sell, resulting in a price drop. However, it’s important to remember that while historical trends provide an indication, they are not a guaranteed predictor of future events.
LTC Latest Price Action
On June 30, Litecoin experienced a significant price hike, recording a sizeable green candlestick. This surge propelled LTC to the high of $109 at the time of writing, reflecting a nearly 24% increase over the last seven days.
In addition, Litecoin has exhibited a minor decrease of 1.8% within the last 24 hours. The asset’s market capitalization has also seen a 22.5% surge in the past week, moving from a low of $6.4 billion last Monday to as high as $8 billion as of today. This has ranked the altcoin as 8th among the largest crypto by market capitalization.
Litecoin’s daily trading volume has also recorded a significant surge from the $462 million volume seen late last month to stand above $1 billion in the past 24 hours. LTC currently has a 24-hour low of $108 and a 24-hour high of $114.
It is worth noting that LTC’s recent surge can be attributed to the upcoming halving which is to take place in the next few weeks. This has served as a catalyst for investors to accumulate the altcoin. However, despite the LTC surge, the asset is still 72% down from its peak of $412.
Featured image from Shutterstock, Chart from TradingView
Source: NewsBTC.com
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