The MVRV (Market Value to Realised Value) ratio of Litecoin (LTC) has led crypto expert Ali to suggest a possible trend for the currency’s price. He notes that the 30-day MVRV for Litecoin is about 35% and that a strong price correction has occurred every time LTC has crossed the 30% mark since 2018. As a result, LTC experiences a 30%–40% price decline.
“Litecoin MVRV 30D now resides at 35%. Since 2018, if LTC MVRV 30D goes over 30%, a significant price correction has historically occurred. According to Ali, this typically results in an LTC price decline of between 30% and 40%.
On-chain analytics company Santiment issued a warning about a local top formation for LTC over the weekend as social volume increased.
Santiment claims that surges in LTC social volume typically lead to a transient top.
On June 30, LTC printed a huge green candlestick, which caused its price to soar. As of the time of writing, the surge had reached highs of $114.98. In the past seven days, the token has increased by around 27%.
Litecoin is now up a bit over the previous 24 hours, trading around $110 USD. Since the daily RSI is presently above the 70 overbought levels, it is possible that bulls may pause for a moment before resuming their ascent.
Litecoin forms golden cross
On the daily chart of Litecoin, a golden cross has formed. A golden cross, which is typically regarded as a good sign, happens when the moving average (MA) 50 climbs above the daily moving average (MA) 200.
Moving averages are indicators that look backward, therefore the signal shows that the market’s recent gains have exceeded its longer-term advances. Nevertheless, traders and chart gurus view it as a long-term indicator of rising prices.
The impending halving event in August is anticipated to boost the price of Litecoin. Each Litecoin price halving was preceded by a big price spike, suggesting that if history repeats itself, a similar situation may be likely.
