As the specter of the US debt ceiling looms larger than ever, market uncertainties continue to grow, leading to cautious behavior among traders and investors worldwide. Amid the economic turmoil, several crypto assets are now trading on the verge of a crucial price level and altcoin traders are questioning the next possible move. Litecoin’s present scenario finds the asset flirting with a much-anticipated $90 threshold. With this feat, Litecoin is generating a strong momentum that is igniting a renewed interest and optimism among traders.
Litecoin Is Significantly Undervalued
A key on chain metric indicates that Litecoin (LTC), currently ranked 12th in terms of market capitalization, seems to be trading at prices below its perceived value. At the time of writing, Litecoin’s Market Value to Realized Value (MVRV) Z-score is in negative territory. According to data analysis firm Glassnode, a score below zero suggests that the cryptocurrency is trading at a value that is lower than its estimated fair value, implying an undervaluation.
According to data from IntoTheBlock, a leading on-chain data analytics platform, Litecoin’s network has exhibited substantial growth this year. The volume of transactions has witnessed a remarkable surge of almost 400%, and about half of the total LTC supply is currently held by retail users. An impressive 60% of LTC holders are enjoying significant profits, and nearly 3.9 million wallets have maintained their LTC holdings for more than a year. In addition, the coin’s hash rate has increased by 25%.
Set to occur on August 10 this year, the much-anticipated Litecoin halving event, often colloquially referred to as ‘halvening,’ will see a programmed reduction of mining rewards by 50%. Much like its counterpart, Bitcoin, this event is predicted to be beneficial for Litecoin. It will inherently make LTC more scarce, potentially driving up its value.
Will LTC Price Make A Big Move Near $90?
In spite of the existing bearish sentiment in the crypto market, Litecoin has distinguished itself as a strong contender. Although the LTC price has seen negligible fluctuations in the past 24 hours, a closer look at the weekly chart shows a promising 4% increase.
Litecoin achieved a noteworthy milestone when it crossed the pivotal $90 price mark, indicating a positive trend in its value. As of writing, the LTC price trades at $91.4, surging over 0.5% in the last 24 hours.
Litecoin’s price faced a hurdle near the $95 resistance mark following a consistent rise. This led to a minor downward adjustment, with LTC trading below the $92 level. If bulls clear the hurdle above 23.6% Fib level at $93-$95 region, a slow increase may occur to the next resistance level at $100.