Journalist
Posted:
- After a brief correction, LTC rose marginally over a 24-hour period
- Market indicators looked bearish as the mining sector boomed
After almost hitting the $80 mark, Litecoin [LTC] registered a price correction, which can be attributed to the bearish market. While that happened, should investors believe that Litecoin is undervalued even after the price correction?
Is Litecoin Undervalued?
For Litecoin, the previous week was difficult as it saw a large price drop on the charts. According to CoinMarketCapLTC’s daily chart was green, with the crypto increasing in value by 1.5% in 24 hours. At the time of writing, it was trading at $73.16 with a market cap of over $5.4 billion.
Given the ongoing price correction, investors should expect this LTC are undervalued? To assess the same, AMBCrypto dug deeper and checked LTC’s reserve risk. For starters, if confidence is low and price is high, then risk or reward is unattractive at that point (reserve risk is high). Similarly, Litecoin’s reserve risk recorded a rise in the charts – a sign that it was overvalued.
Source: Glassnode
On the contrary, Shan Belew, a popular Litecoin analyst, suggested that LTC was undervalued. According to him, LTC will remain undervalued as long as the price of LTC remains below the white lines (as visible in the tweet).
Litecoin below the white lines is undervalued. pic.twitter.com/RrFx9gUgpD
— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) December 11, 2023
What to expect in the future
AMBCrypto also looked at LTC’s social metrics to better understand investor sentiment. According to the same, LTC‘s popularity declined, as evidenced by the decline in social volume. Weighted sentiment also fell last week, causing negative sentiment to dominate the market.
Source: Santiment
We then looked at the daily chart of the blockchain to see what investors could expect from LTC and to better understand whether LTC is undervalued or not.
At the time of writing, Litecoin’s MACD predicted the possibility of a bearish crossover in the near term. Both LTC‘s Money Flow Index (MFI) and Chaikin Money Low (CMF) registered a decline, raising the possibility of a price drop in the coming days.
Source: TradingView
How many Worth 1,10,100 LTCs today
A thriving mining industry
With the crypto price in the grip of a period of volatility, the mining industry grew. This is evident from the fact that the hashrate registered an increase after a downward trend on December 4.
At the time of writing, LTC’s hashrate was 859.48 TH/s. Like the hashrate, that of Coinwarz facts revealed that Litecoin mining difficulties also remained relatively high, with the same flashing value of 28.62 million.
Source: Coinwarz
