- BTC’s NVT Ratio indicated that it was overvalued.
- Most market indicators were bullish on the coin.
As the overall market turned bullish, Litecoin’s [LTC] value surged as well. The better news was that the coin’s recent movements hinted at a further uptrend.
Litecoin is pumping
According to CoinMarketCap, LTC’s price rose by 17% in the last seven days. In fact, in the last 24 hours alone, the coin’s value surged by over 4%.
At the time of writing, the coin was trading at $95.19 with a market capitalization of over $7 billion, making it the 22nd largest crypto.
While that happened, the token’s value also started to exit from a bullish triangle pattern. World of Charts, a popular crypto analyst, posted a tweet revealing that LTC’s value broke above a critical resistance zone.
If the analysis is to be believed, this might be the beginning of a bull rally, which can allow LTC to reach $400 over the coming months.
Since the target seemed pretty ambitious, AMBCrypto planned to take a look at the coin’s on-chain metrics.
What do metrics suggest?
Our analysis of Santiment’s data revealed that the coin’s MVRV ratio surged during the last week. This was a bullish signal that hinted at a further rise in its price.
However, while the coin’s price rose, its network-to-value (NVT) ratio also spiked.
A rise in this metric signifies that an asset is overvalued, which might cause a price drop and, in turn, put an end to Litecoin’s bull rally.
Source: Santiment
A look at other metrics revealed that Litecoin’s network activity remained high, which was evident from its Daily Active Addresses.
Its transaction count also remained relatively high last week, signaling that investors were actively trading the coin. Moreover, LTC’s daily transaction volume in profit also spiked last week.
Source: Santiment
We then checked the coin’s daily chart to double-check whether a further uptrend was on the horizon. As per our analysis of TradingView’s chart, MACD displayed a bullish crossover.
Read Litecoin’s [LTC] Price Prediction 2024-25
Its Money Flow Index (MFI) also rose, indicating that the chances of a further price uptrend were high. The coin’s Chaikin Money Flow (CMF) also dropped, which can stop Litecoin’s northward movement.
Source: TradingView
In the meantime, the blockchain’s hashrate remained relatively stable. AMBCrypto’s look at CoinWarz’s data revealed that at press time, Litecoin’s hashrate reached 988.37 TH/s.