Portfolio management provider GoodCrypto joins Cointelegraph Accelerator
GoodCrypto joins a dedicated Cointelegraph support program for Web3 innovators to increase its brand value and scale up marketing efforts.
GoodCrypto joins a dedicated Cointelegraph support program for Web3 innovators to increase its brand value and scale up marketing efforts.
On-chain data shows the Litecoin MVRV has been at relatively high levels recently, something that could be bearish for the cryptocurrency. Both 30-Day & 365-Day Litecoin MVRV Ratios Are High Currently According to data from the on-chain analytics firm Santiment, LTC traders are well above water at the moment. The “MVRV ratio” is an indicator that measures the ratio between the two main capitalization models for Litecoin: the market cap and the realized cap. The market cap here is the usual cap that calculates the total value of the asset by simply taking the value of each coin in the circulating supply the same as the current spot price. The realized cap, however, is a more special model as it assumes that the actual value of any coin in circulation is the price at which it was last transacted on the blockchain. Since this model aims to estimate a sort of “true value” for Litecoin, its comparison with the market cap (that is, the spot price) in the MVRV can tell us whether the asset’s price is fair or not right now. When the MVRV has a value greater than 1, it means the market cap is above the realized cap currently. During such times, the average investor is in a state of profit, so the incentive to sell for them increases. As such, the cryptocurrency could be considered overpriced in these conditions. Related Reading: How Does Current Bitcoin Rally Compare With Historical Ones? On the other hand, the indicator having a value lower than this threshold implies the average holder is in a loss, and hence, the asset may be undervalued currently. Now, here is a chart that shows the trend in the 30-day and 365-day moving averages (MAs) of the Litecoin MVRV ratio over the last few months: Looks like the values of the metrics have been high in recent days | Source: Santiment As displayed in the above graph, both the 30-day and 365-day MAs of Litecoin MVRV have risen above the baseline with the recent surge in the price beyond the $90 level. This may mean that the cryptocurrency could have become slightly overpriced. Prior to this surge, when LTC had been visiting some lows, the 30-day version of the indicator had temporarily entered into the undervalued region. Coinciding with these values of the metric, the price formed its bottom and eventually built up towards the current surge. Related Reading: Former MicroStrategy CEO Says Bitcoin Rally Just Getting Started Back in April, the MVRV MAs showed a similar behavior as right now, as they touched relatively high values when the asset had rallied above the $100 mark. The rally stopped before long in those overvalued conditions, and the asset took a plunge. If a similar pattern as back then also follows with the current overpriced values of the indicator, then Litecoin may go on to observe a correction in the near future. In the long term, however, the outlook of the asset could still remain bullish, as the much-awaited halving event, where the cryptocurrency’s block rewards will be permanently cut in half, will take place in August, which is just around the corner now. LTC Price At the time of writing, Litecoin is trading around $91, up 1% in the last week. LTC has seen some surge in the last few days | Source: LTCUSD on TradingView Featured image from iStock.com, charts from TradingView.com, Santiment.net
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Top Pepe mania profiteers have dumped their PEPE tokens en masse, suggesting declining holding interest among whales.
The older I get, the more the bank's way of working bothers me. Unfortunately, I believe that the system is designed in such a way that I simply cannot function without a bank. When I was employed, I had to choose the bank where my salaries would be deposited, although I asked to receive my…
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The discussion about the growing significance of decentralized identity within the web3 ecosystem. With the rise in data theft incidents involving institutions like Facebook, Microsoft, Amazon, and others, safeguarding users' identities has become a major concern for many projects. In response to this pressing issue, numerous projects across diverse sectors, including DeFi, gaming, NFTs, and…
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Once upon a time, in a village overrun with monkeys, a man appeared and announced to the villagers that he would buy the monkeys for $10 each. The villagers began catching monkeys to sell to the man. The man bought thousands of monkeys at $10 each, but, as the supply of monkeys started to dwindle,…
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Hi, I am trying to help out an old friend, who is some distance from me, who has had a slight bungle with his Trezor/Metamask wallet some time ago. He is fairly computer basic, but to rule out one thing before I travel to help him I just wanted to know if there was a…
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