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- After a brief correction, LTC rose slightly over the next 24 hours.
- While the mining sector thrived, market indicators were weak.
After rising to nearly $80, Litecoin (LTC) registered Price adjustment due to bear market. While that happens, should investors believe that Litecoin is actually undervalued even after the price correction?
Is Litecoin Undervalued?
For Litecoin, the past week has been difficult with the price dropping significantly on the charts. According to CoinMarketCap, the daily chart of LTC is in the green, with the cryptocurrency up 1.5% in 24 hours. At the time of this writing, it was trading at $73.16, with a market capitalization of over $5.4 billion.
Given the ongoing price correction, what should investors expect? LTC To be undervalued? To evaluate this, AMBCrypto dug deeper and identified the preliminary risks of LTC. First of all, if confidence is low and prices are high, neither the risk nor the reward is attractive at the time (high reserve risk). Likewise, Litecoin’s reserve risk has been trending upward on the charts. This is a sign that Litecoin is overvalued.
Source: Glassnode
Conversely, renowned Litecoin analyst Shan Belew suggested that LTC is undervalued. According to him, as long as the price of LTC is below the white line (as seen in the tweet), LTC will remain undervalued.
Litecoin below the white line is undervalued. pic.twitter.com/RrFx9gUgpD
— Shan Bellew Ⓜ️🕸 (@MASTERBTCLTC) December 11, 2023
What to Expect in the Future
AMBCrypto also looked at LTC’s social metrics to better understand investor sentiment. Likewise, LTCIts popularity has declined, as evidenced by its decline in social volume. Weighted sentiment also fell last week, meaning negative sentiment dominated the market.
Source: Santiment
We then looked at the daily charts of the blockchain to see what investors can expect from LTC and to better understand whether LTC is undervalued.
At press time, Litecoin’s MACD was forecasting a possible bearish crossover in the near term. both LTCThe Money Flow Index (MFI) and Chaikin Money Low (CMF) recorded a downward trend, raising the possibility of future price declines.
Source: TradingView
how much? Currently worth 1,10,100 LTC
a thriving mining industry
The mining industry grew as cryptocurrency prices experienced a period of volatility. This is evidenced by the fact that the hashrate recorded an upward trend after a decline on December 4th.
At press time, LTC’s hashrate was 859.48TH/s. Similar to hashrate, Coinwarz’s data Litecoin’s mining difficulty also appeared to remain relatively high, flashing at 28.62M.
Source: Coin Wars