The metric functions as an outstanding indicator to spot market tops and bottoms through. 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.Interestingly, it looked like traders had already got wind of the LTC possible correction. This inference was because of the closeness between the positiveand its opposite number.
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.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.Subscribe to get it daily in your inbox.