After approaching the $80 level, Litecoin (LTC) recorded a price correction that could be attributed to a bear market. Analysts examining LTC’s price movements have made significant evaluations regarding the cryptocurrency.
The past week was challenging for LTC, with a notable price drop observed. According to CoinMarketCap, LTC’s daily chart was bullish, gaining 1.5% in value within 24 hours. At the time of writing, it was trading at $73.6 and had a market capitalization of over $5.4 billion.
Considering the ongoing price correction, should investors expect a further decline in LTC’s value? Additionally, Litecoin’s reserve risk also showed an increase in the charts, which could be a sign of being overvalued. However, a popular Litecoin analyst, Shan Belew, argued that LTC’s value is low. According to the analyst, as long as LTC’s price stays below the critical level, its value will remain low.
A decline in LTC’s social volume was noted, indicating a decrease in popularity. The prevailing sentiment also fell last week, which could suggest a negative atmosphere in the market. The analyst then looks at the blockchain’s daily chart to better understand whether LTC’s value is below its potential.
At the time of writing, Litecoin’s MACD indicated a potential downward trend in the near term. LTC’s Money Flow Index (MFI) and Chaikin Money Flow (CMF) recorded a decrease, increasing the likelihood of a price drop in the coming days. While cryptocurrency prices fluctuated, the mining industry continued to grow; the increasing hash rate after the downward trend on December 4th is evidence of this. LTC’s hash rate was recorded at 859.48 TH/s. According to data from Coinwarz, Litecoin’s mining difficulty also continued to remain high, showing at 28.62 M.