U.Today - Crypto analyst has hinted at a potential direction for Litecoin's (LTC) price based on its MVRV (Market Value to Realized Value) ratio. He observes that the 30-day MVRV for Litecoin is about 35% and that every time LTC has exceeded the 30% level since 2018, a sharp price correction follows. Consequently, LTC suffers a price drop ranging from 30% to 40%.
"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%," Ali tweeted.
Over the weekend, on-chain analytics firm Santiment warned of a local top formation for LTC as social volume rose.
According to Santiment, LTC social volume spikes frequently result in a temporary top.
On June 30, the price of LTC skyrocketed as it printed a massive green candlestick. The surge continued, reaching highs of $114.98 at the time of writing. The token is up nearly 27% in the last seven days.
Litecoin is presently trading at $110, up a little in the last 24 hours. The daily RSI is currently above the 70 overbought levels, suggesting that bulls may take a little breather before continuing the rise.
Litecoin forms golden cross
Litecoin has formed a golden cross, as shown on the daily chart. A golden cross occurs when the moving average (MA) 50 rises above the daily moving average (MA) 200 and is commonly seen as a positive indication.LTC/USD Daily Chart, Courtesy: Because moving averages are backward-looking indicators, the signal indicates that the market's short-term gains have outpaced its long-term gains. Nonetheless, chart experts and traders regard it as a sign of rising prices in the long run.
The forthcoming halving event in August is regarded as a bullish stimulus for the Litecoin price. Each Litecoin halving was preceded by a significant price increase, implying that a similar scenario might be probable if history repeats itself.