Litecoin’s hash rate and difficulty skyrocketed
Metrics and Galaxy Score also seemed optimistic
However, the RSI and MFI were near the overbought zone on the charts
Litecoins [LTC] hash rate has been on fire lately, with altcoin uptake continuing for several weeks now. Some credit for this can be given to the Ethereum Merge, which started miners to switch to other networks such as Ethereum Classic, Ravencoin, and Litecoin.
The hashrate of Litecoin is⚡️⚡️⚡️
Over 600TH/s in the last few hours. pic.twitter.com/nNs1WxxWbr
— Litecoin Foundation ⚡️ (@LTCFoundation) November 23, 2022
Thanks to the increase in hash rate, the mining of LTC difficulty has also been appreciating lately. As the hash rate and difficulty increased, the price of LTC also registered an unprecedented increase. In fact, according to CoinMarketCap, LTC registered more than 30% 7-day gains. At the time of writing, it was trade at $78.61 with a market cap of over $5.6 billion.
Read Litecoins [LTC] Price prediction 2023-24
Better days ahead?
The increase in hashrate can also be attributed to this price increase as it is possible that new miners joined the ecosystem in hopes of higher profits. Interestingly, several developments and updates that took place in the Litecoin ecosystem suggested that good days may lie ahead for miners.
According to LunarCrush, for example, LTC is on the list of cryptos that have the highest Galaxy Score. This is an important bullish signal for LTC, one that predicts a continued uptrend in the coming days.
LunarCrush Galaxy Score™ is a proprietary score that constantly measures a cryptocurrency against itself with respect to the community stats pulled in from around the web.
— LunarCrush (@LunarCrush) November 23, 2022
Not only that, but the Litecoin ecosystem is also quite heated on the social front as social mentions recently hit 1.84K per hour – the highest point in the last 90 days, reflecting the popularity of the coin in the crypto community.
Statistics favored the buyers
Take a look at LTC‘s on-chain metrics indicated that the investors may have more days to cherish. LTC’s MVRV ratio was significantly higher over the past week, which is a bullish signal. Moreover, LTC also received quite a bit of interest from the derivatives market as its Binance funding rate also marked an increase.
LTC volume also shot up a few days ago, but at the time of writing, it was down. This can be difficult in the future.
Bears might be getting ready
Although most of the statistics gave a positive impression of LTCthe market indicators told a different story.
TradingView’s chart revealed that the cryptocurrency’s Relative Strength Index (RSI) reached the overbought zone and then registered a slight decline – a sign of a possible market top. The Money Flow Index (MFI) also followed the same path and found itself just near the overbought zone, further increasing the likelihood of a trend reversal in the coming days.
Nevertheless, the Exponential Moving Average (EMA) ribbon supported the bulls as the 20-day EMA rested above the 55-day EMA.
This post Is caution an option for Litecoin [LTC] investors ahead
was published first on https://ambcrypto.com/is-caution-an-option-for-litecoin-ltc-investors-going-forward/