With the specter of the US debt ceiling bigger than ever, market uncertainties continue to mount, leading to cautious behavior among traders and investors worldwide. Amid the economic turmoil, several crypto assets are now trading on the verge of a crucial price level and altcoin traders are doubting the next possible move. In Litecoin’s current scenario, the asset is flirting with a long-awaited $90 threshold. With this performance, Litecoin is generating strong momentum fueling renewed interest and optimism among traders.
Litecoin is significantly undervalued
A key chain statistic indicates that Litecoin (LTC), currently ranked 12th in terms of market cap, appears to be trading at prices below perceived value. At the time of writing, Litecoin’s Market Value to Realized Value (MVRV) Z-score is in negative territory. According to data analytics firm Glassnode, a score below zero suggests the cryptocurrency is trading at a value lower than its estimated fair value, implying an undervaluation.
According to data from IntoTheBlock, a leading on-chain data analytics platform, Litecoin’s network has shown significant growth this year. Transaction volume has increased remarkably by almost 400% and about half of the total LTC supply is currently held by retail users. An impressive 60% of LTC holders are enjoying significant profits, and nearly 3.9 million wallets have held their LTC holdings for over a year. In addition, the hash rate of the coin has increased by 25%.
The highly anticipated Litecoin halving event, popularly referred to as “halving,” will take place on August 10 this year and will bring a programmed 50% reduction in mining rewards. Like its counterpart, Bitcoin, this event is predicted to be beneficial for Litecoin. It will inherently make LTC scarcer, potentially increasing its value.
Will LTC price make a big move near $90?
Despite the existing bearish sentiment in the crypto market, Litecoin has stood out as a strong competitor. While the LTC price has seen negligible swings over the past 24 hours, a closer look at the weekly chart shows a promising 4% increase.
Litecoin reached a remarkable milestone when it crossed the crucial $90 price point, indicating a positive trend in its value. At the time of writing, the LTC price is trading at $91.4, up more than 0.5% in the past 24 hours.
Litecoin price faced a hurdle near the $95 resistance mark after a consistent rise. This led to a minor downside adjustment, with the LTC trading below the $92 level. If bulls take the hurdle above 23.6% Fib level at $93-$95 region, there could be a slow rise to the next resistance level at $100.
