Analytical firm Santiment has warned investors that Litecoin is entering dangerous territory, quickly reaching new local highs.
Santiment pointed to several metrics to track Litecoin’s price action and gauge the overall health of the network.
The firm emphasizes that Litecoin is in the danger zone because short-term investors are now in a position to profit. Santiment uses the MVRV seven-day indicator, which shows the average profit and loss of all currently circulating cryptos based on current value. ”
Santiment also highlights that Litecoin value appears to have captured Bitcoin’s gains since September’s low.
While Santiment expects Litecoin to consolidate, the firm also states that an on-chain metric has a strong signal for the LTC network.