- BTC’s NVT ratio indicated that it was overvalued.
- Most market indicators were bullish on the coin.
When the overall market turned bullish, Litecoins [LTC] value also increased. The better news was that the currency’s recent moves indicated a further upward trend.
Litecoin is pumping
According to CoinMarketCapThe price of LTC has risen 17% over the past seven days. In the last 24 hours alone, the value of the coin has increased by more than 4%.
At the time of writing, the coin was trading at $95.19 with a market cap of over $7 billion, making it the 22nd largest cryptocurrency.
As that happened, the token’s value also began to move out of a bullish triangle pattern. World of Charts, a popular crypto analyst, posted tweet which showed that the value of LTC broke above a critical resistance zone.
If the analysis is to be believed, this could be the start of a bull rally that could see LTC reach $400 in the coming months.
Since the goal seemed quite ambitious, AMBCrypto planned to take a look at the coin’s on-chain metrics.
What do statistics suggest?
Our analysis of Santiment’s data showed that the coin’s MVRV ratio has soared over the past week. This was a bullish signal indicating a further increase in the price.
As the price of the coin rose, so did the network value ratio (NVT).
A rise in this measure means an asset is overvalued, which could cause a price drop and in turn put an end to Litecoin’s bull rally.
Source: Santiment
A look at other metrics revealed that Litecoin’s network activity remained high, which was evident in the Daily Active Addresses.
The number of transactions also remained relatively high last week, indicating that investors were actively trading the currency. Moreover, LTC’s daily profit transaction volume also increased last week.
Source: Santiment
We then checked the coin’s daily chart to check if there was a further uptrend on the horizon. According to our analysis of the TradingView chart, MACD showed a bullish crossover.
Read Litecoins [LTC] Price prediction 2024-25
The Money Flow Index (MFI) also rose, indicating that the chances of further price appreciation were high. The coin’s Chaikin Money Flow (CMF) also fell, which may halt Litecoin’s northward movement.
Source: TradingView
In the meantime, the blockchain hashrate remained relatively stable. AMBCrypto’s look at CoinWarz facts revealed that at the time of writing, Litecoin’s hashrate reached 988.37 TH/s.