Litecoin Is Now In The MVRV Opportunity Zone
According to data from the on-chain analytics firm , some altcoins, including Litecoin, are showing underbought signals after the recent price decline. The “MVRV” (Market Value to Realized Value) is an indicator that measures the ratio between the market cap of a given asset and its realized cap.
The realized cap here refers to a sort of “true” value model that says the actual value of any token in the circulating supply is the price at which it was last moved on the blockchain, and not whatever the current price of the asset is.Now, here is a chart that shows the divergence of the MVRV indicator from these zones for various cryptocurrencies in the sector:
Looks like a lot of these coins are in the green region currently | Source:The way that Santiment has defined the divergence (that is, the distance from the zones) has made it so that a buying signal occurs when an asset’s MVRV divergence crosses 1, while a selling signal takes place below -1 (this orientation is the opposite of what’s usually the case in the MVRV ratio; this flip is done with the intention to make the metric more intuitive).
In the case of Litecoin, a bullish narrative in the form of its halving, an event where its mining block rewards will be cut in half, is also right around the corner now, so there is an increased probability that the price could bottom out and rebound soon. It’s uncertain, however, whether the bottom is already here or if there is still some drawdown to go.
LTC Price
At the time of writing, Litecoin is trading around $79, down 1% in the last week.LTC has declined recently | Source: