Litecoin has been on the decline for some time. Despite being one of the oldest cryptos on the market, LTC has been overshadowed by Bitcoin and Ethereum. However, when the top 2 recovered, Litecoin was also able to hold its own in the charts. In fact, crypto broke the $ 180 mark. Now the question arises – is it an equally strong investment?
Litecoin looks up
On the daily chart, which was trading at $ 188 at press time, Litecoin was up 75% in a month. At the time of writing, the altcoin had already broken its flagging structure and as soon as the next close confirms that breakout, $ 200 can be expected. More importantly, LTC appears to be an attractive choice from an investment perspective.
No old coins moved on this rally as Coin Days Destroyed was at a low. This is unlike in May when the CDD climbed over 200 million.
This can also be confirmed by the metric, which indicates the average time a token is currently held – 1.6 years. This result suggests that the rally will remain stable and the market will not see sudden selling.
In addition, the reserve risk was also below 0.002. The indicator represents investor behavior depending on the price and performance of the coin. Higher values mean less confidence and lower values mean the coin is attractive and investors are confident.
Will LTC stay stable in the future?
Indeed it will. The MVRV ratio was positively above 1, implying that the coin has fair value. As long as this position is held, investors are in good hands. And since Litecoin’s correlation to Bitcoin reaches 0.97, its “Silver to Bitcoin’s Gold” label can only be justified.
Finally, it is also important to look at institutional behavior, as they make up a large part of the offer. The Grayscale Litecoin Trust (LTCN) rose 8% on August 20 and 7.8% the next day. This is a sign that Litecoin is doing well in this regard as well.
Overall, investors can currently view LTC as a good investment opportunity.