Litecoin Faces Potential Drop Below $70 as $70 Million LTC Set to Hit Market

  • Litecoin (LTC) appears to be under pressure, with approximately $70 million worth of LTC poised to be sold, which could push the price below $70.
  • Network activity has also seen a decline, pointing to potential overvaluation of Litecoin.
  • “The recent NVT and MVRV ratios indicate that Litecoin may be overvalued and could face a price correction,” said a market analyst.

Amidst mounting sell orders, Litecoin could experience a significant price drop due to declining network activity and overvaluation metrics, raising concerns among investors.

Litecoin Holders Prepare for Massive Sell-Off

According to market data, Litecoin holders are gearing up for potential large-scale liquidation. Specifically, around 928,200 LTC, valued at nearly $70 million, are listed on the sell side at an asking price of $74.65. This imbalance between the ask and bid sides suggests a downward pressure on the price, potentially targeting a range between $72 and $70.

Network Value to Transaction (NVT) Ratio Signals Overvaluation

The Network Value to Transaction (NVT) ratio for Litecoin has increased, indicating that the market cap is growing faster than the transaction volume. This rise in the NVT ratio suggests that Litecoin’s network might be overvalued. On the contrary, a declining NVT ratio would imply that the network is undervalued. Current data from Glassnode corroborates this assessment, showing that LTC is likely overvalued under current market conditions.

More Profits, More Problems: The MVRV Ratio Insight

The Market Value to Realized Value (MVRV) ratio, another crucial metric, is currently at 14.10% for Litecoin over the past 30 days. This high level indicates that if all LTC holders were to sell now, they could potentially see average returns of around 14%, flagging possible overvaluation. Given the broader market’s sideways movement, this further emphasizes the potential for a price correction in Litecoin.

Decline in Active Addresses Reflects Reduced Network Activity

Another metric showing red flags is the decline in active addresses on the Litecoin network. Data from Santiment reveals that the number of 24-hour active addresses has dropped to 401,000, a significant decrease from the activity levels seen last month. A decline in active addresses often points to reduced user engagement and transaction volumes, which can negatively impact demand and consequently, price.

Conclusion

In summary, a combination of high sell orders, rising NVT ratio, elevated MVRV ratio, and declining active addresses all suggest that Litecoin could be facing a downturn. Investors should keep a close watch on these metrics, as they are strong indicators of potential price movements. A spike in buying pressure could alter this outlook, but current signs point towards a possible price correction.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

$ZKC added to Binance alpha projects

$ZKC added to Binance alpha projects

Trump Urges SEC to Replace Quarterly Filings with Semiannual Reports — Potential Boost for Bitcoin

COINOTAG News reported on September 15 that former President...

HELIUS SECURES OVER $500 MILLION FUNDING WITH PANTERA CAPITAL AND SUMMER CAPITAL TO LAUNCH SOL TREASURY COMPANY: Link

HELIUS SECURES OVER $500 MILLION FUNDING WITH PANTERA CAPITAL...

$PORTALS soon on Bybit spot

$PORTALS soon on Bybit spot

MICROSTRATEGY PURCHASED 525 BITCOINS BETWEEN SEPTEMBER 8 – SEPTEMBER 14 AT AN AVERAGE PRICE OF $114,562 (TOTAL: $60.2 MILLION)

MICROSTRATEGY PURCHASED 525 BITCOINS BETWEEN SEPTEMBER 8 - SEPTEMBER...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img