- Litecoin outperformed Bitcoin and jumped to the top of social rankings.
- The rally may not last as LTC could be termed overvalued.
Litecoin [LTC] separated itself from the broader market fall after the Fed decision ended in an interest rate increase. The decision may have negatively affected Bitcoin [BTC], and several others, but LTC was able to pick out a 13.78% uptick as its own repercussion.
How much are 1,10,100 LTCs worth today?
Usually, a circumstance like this would have been a result of a notable development around a project. However, this was not the case with the native cryptocurrency of the low-cost blockchain payment network.
Hail LTC, king of the social network
Regardless of its silence with upgrades, LunarCrush reported that no other coin matched up to LTC in terms of social and market activity. At press time, social engagements peaked at 29,819,175 while mentions were at 4,467.
Source: LunarCrush
Being at the top of the standings means that LTC had an excellent status as per its financials, community, and market metrics. It also infers that investors considered the coin as a promising one in the short term.
Although LTC may have obtained investors’ confidence and outperformed BTC, the next line of action might be to take caution. This was due to the on-chain condition as displayed by the Market Value to Realized Value (MVRV) ratio.
Could be time to tone it down
The metric functions as an outstanding indicator to spot market tops and bottoms through halving cycles. It also tells when an asset is undervalued or otherwise. At press time, the 365-day MVRV ratio was 25.95%.
Long-term holders might be considerably unperturbed by this position since LTC was 82.56% down from its ATH. However, the metric increase might not be the same for investors looking for quick gains as this implied that LTC could be overvalued.
Furthermore, the MVRV long/short difference seemed to agree with the ratio position. At the time of writing, the metric was 19.85%. Since it was not on the negative axis, it means that short-term realized profits could sink anytime soon.
Source: Santiment
Read Litecoin’s [LTC] Price Prediction 2023-2024
Interestingly, it looked like traders had already got wind of the LTC possible correction. This inference was because of the closeness between the positive sentiment and its opposite number. While the negative sentiment shows disinterest, the positive sentiment usually measures the level of excitement.
At the time of writing, the initial hike in elated perception had fallen drastically while the negative sentiment edged out the competition at 144. An explanation of this scenario aligns with the traders’ reduced enthusiasm for a further LTC hike.
Source: Santiment
In conclusion, LTC’s price seemed determined to test new highs. And since it split from the Bitcoin correlation over the last day, one can’t say for sure if the king coin would influence its next movement.
