As the specter of the US debt ceiling looms higher than ever, market uncertainties continue to grow, leading to cautious behavior among traders and investors around the world. Amid the economic turmoil, several crypto assets are now trading on the brink of a crucial price level and altcoin traders are wondering about the next possible move. The current scenario for Litecoin finds the asset flirting with a highly anticipated threshold of $90. With this achievement, Litecoin is generating strong momentum that is generating renewed interest and optimism among traders.
Litecoin is significantly undervalued
A key on-chain metric indicates that Litecoin (LTC), currently ranked 12th by market capitalization, appears to be trading at prices below its perceived value. At the time of writing, Litecoin’s Market Value to Realized Value (MVRV) Z-score is in negative territory. According to data analytics firm Glassnode, a score below zero suggests the cryptocurrency is trading at less than its estimated fair value, implying undervaluation.
According to data from IntoTheBlock, a leading on-chain data analytics platform, Litecoin’s network has seen substantial growth this year. Transaction volume has seen a remarkable increase of almost 400%, and approximately half of the total LTC supply is currently held by retail users. An impressive 60% of LTC holders are making significant profits and almost 3.9 million wallets have held their LTC holdings for over a year. Additionally, the hash rate of the coin has increased by 25%.
Scheduled for August 10 this year, the highly anticipated Litecoin halving event, often colloquially referred to as the “halving,” will see a timed reduction in mining rewards by 50%. Just like its counterpart, Bitcoin, this event should be beneficial for Litecoin. This will inherently make LTC rarer, potentially increasing its value.
Will the LTC price take a big leap towards $90?
Despite the existing bearish sentiment in the crypto market, Litecoin has stood out as a strong contender. Although the LTC price has seen negligible fluctuations over the past 24 hours, a closer look at the weekly chart shows a promising 4% increase.
Litecoin took a big step when it broke through the $90 mark, indicating a positive trend in its value. At the time of writing, LTC price is trading at $91.4, up more than 0.5% in the last 24 hours.
Litecoin price faced a hurdle near the $95 resistance mark after steadily rising. This led to a minor downward adjustment, with LTC trading below the $92 level. If the bulls break through the hurdle above the 23.6% Fib level in the $93-$95 region, a slow rise may occur to the next resistance level at $100.