Litecoin outperformed Bitcoin, but not in a way you’d think
Litecoin [LTC] also referred to as the ‘silver’ to Bitcoin’s ‘gold’, recorded a drop in price in the past week along with several other cryptos.
However, the point that sets Litcoin apart from others is that it also showed better signs of recovery in the last 24-hour period as its performance increased by more than 2%.
The growth recorded by LTC in the last 24 hours was even more than top cryptos like Bitcoin and Ethereum. At press time, Litecoin was trading at $54.25.
Which calculations suggest
Since the massive market crash earlier this year, most cryptos, along with LTC, have struggled to raise their values. Since July, however, the market has shown signs of recovery, which helped LTC reach the $63 mark in mid-August.
The recent decline pushed LTC’s price to $52. A good sign is that the MVRV ratio also registered a decline along with LTC’s price, indicating a possible market bottom. Therefore, there is a possibility that Litecoin will continue to move upwards in the coming days.
Litecoin holders may take that as a signal to take a progressively long position.
Source: Glassnode
Moreover, an interesting development for investors was that the reserve risk of LTC also moved downwards, creating an opportunity for investors to buy as the risk-to-reward ratio improved.
Source: Glassnode
While the aforementioned metrics registered a decline, Litecoin’s development activity increased over the past week. This is mostly a positive signal for crypto as it represents the interest and effort of developers to improve the blockchain.
Source: Sentiment
Proceeding
Interestingly, the readings from LTC’s 4-hour chart were ambiguous. While some indicators offered hope for brighter days ahead, some suggested otherwise.
The MACD showed a bullish crossover on August 28 when the blue line was on the verge of turning the red. This indicated that a further increase in LTC’s price can be expected. However, the RSI was seen resting at the 44.55 mark without showing any explicitly bullish sign like the MACD.
Source: TradingView
On the other hand, the EMA (Exponential Moving Average) band suggested a bearish edge in the market as the red line was well above the yellow line and the gap appeared to be widening.
Also, the Bollinger Bands hinted at a possible price squeeze on LTC over the next few days. This minimizes the possibility of an eruption to the north.
