The famous crypto analytics firm Santiment has warned that Litecoin is in dangerous territory after the price increase. Crypto analytics firm Santiment thinks the rapid ascent of popular altcoin Litecoin to new local highs has placed the asset in dangerous trading territory. Detail Cryptocoin. com
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Endangered altcoin Litecoin
In a new Litecoin (LTC) market update, Santiment points to several useful metrics for tracking Litecoin’s price action and measuring the overall health of the network. The analytics firm states that Litecoin is in the “danger zone” because short-term holders are now in a position to make a profit. Santiment uses an indicator that relates market value to realized value (MVRV), which shows the average profit/loss of all cryptocurrencies currently in circulation relative to the current price. Santiment: “The 7-day MVRV 7D, which measures the short-term profit/loss of LTC holders, shows that we are now in the danger zone as all short-term holders are in profit – which may encourage them to take some profits. ”
In September, LTC was sitting at a one-month low of $140 before surging to a new local high of $295, collecting more than 100% from this level. Santiment also notes that Litecoin’s price seems to have caught up with Bitcoin’s relative gains since September’s low: “An interesting thing to note is that LTC’s price reflects very closely to BTCs… This is also when BTC drops. Since it doesn’t show any strength, it means that LTC isn’t exactly a strong altcoin, it’s mainly that BTC is dragging it. ”
Santiment says that while it expects Litecoin to consolidate, an on-chain metric is the strength signal for the LTC network: “LTC’s Daily Active Addresses” have been pretty consistent and growing over the last 3 months, which is great because that’s what we would like to see in a healthy network This. ”