Is caution an option for Litecoin [LTC] investors going forward
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- Litecoin’s hash value and difficulty skyrocketed
- The metrics and Galaxy Score also seemed optimistic
- However, the RSI and the MFI were near the overbought zone on the charts
Litecoins [LTC] hashrate has been on fire lately, and altcoin records have continued to rise for several weeks. This can be credited to the Ethereum Merge, which caused miners to migrate to other networks such as Ethereum Classic, Ravencoin, and Litecoin.
Litecoin Hashrate is ⚡️⚡️⚡️
Over 600 TH/s in the last few hours. pic.twitter.com/nNs1WxxWbr
— Litecoin Foundation ⚡️ (@LTCFoundation) November 23, 2022
Thanks to the increase in hash value, LTC mining difficulty has also appreciated recently. As the hash rate and difficulty increased, so did the price of LTC like never before. In fact, according to CoinMarketCap, LTC posted a 7-day gain of over 30%. At press time it was trade $78.61 and a market cap of over $5.6 billion.
Read Litecoins [LTC] Price prediction 2023-24
Better days ahead?
The increase in hashrate is also due to this price increase, as it is possible that new miners joined the ecosystem in the hope of higher profits. Interestingly, several developments and updates in the Litecoin ecosystem suggested that good days might be ahead for miners.
According to LunarCrush, e.g. LTC is on the list of cryptos with the highest Galaxy Score. This is a significant bullish signal for LTC, predicting a sustained uptrend in the coming days.
The LunarCrush Galaxy Score™ is a proprietary score that continuously measures a cryptocurrency against itself based on community metrics pulled from the web.
— LunarCrush (@LunarCrush) November 23, 2022
Not only that, but the Litecoin ecosystem is also pretty hot on the social front, with its social mentions recently hitting 1.84,000 per hour – the highest point in the last 90 days, reflecting the coin’s popularity in the crypto community.
Meters favor buyers
Review LTCThe chain’s metrics showed that investors may have more days to cherish. LTC’s MVRV Ratio was significantly higher last week, which is a bullish signal. In addition, LTC also received quite a lot of interest from the derivatives market, as its Binance funding rate also marked an increase.
LTC volume also skyrocketed a few days ago, but at the time of writing it had registered a decline. This can be tricky in the future.
The Bears may be gearing up
Although most of the indicators gave a positive impression LTCits market indicators told a different story.
TradingView’s chart revealed that the crypto’s Relative Strength Index (RSI) hit overbought territory and then registered a slight decline – a sign of a possible market top. The money flow index (MFI) also followed the same path and was just close to the overbought zone, which further increased the chances of a trend reversal in the coming days.
Nevertheless, the exponential moving average (EMA) band supported the bulls as the 20-day EMA rests above the 55-day EMA.