- Litecoin has proven to be the preferred payment method for BitPay users.
- The MVRV ratio reading for LTC may put some pressure on the long-term holders.
According to another Modernization past litecoin, It was revealed that LTC was one of the most preferred payment methods among the other major cryptocurrencies.
Read Litecoin price prediction 2023-2024
Reports indicate that Litecoin transactions on BitPay (payment processor) have increased exponentially. The number of transactions represents 27.64% of the total number of transactions made on the platform.
Litecoin has managed to overtake other popular cryptocurrencies such as Ethereum, Doge, and XRP in this regard. However, it could not surpass Bitcoin because the king coin was responsible for 41.62% of the total transactions made on the platform.
However, when it comes to mining, Litecoin It proved very profitable for the miners, generating 58% in profits, according to Encryption comparison.
Its hash rate has increased in the past month as shown in the image below. Over the past 30 days, the Litecoin hash rate has increased by 3.05%. The increased hash rate indicates the enhanced security and stability of the network.
But it also indicates that more energy is needed to mine Litecoin.
These factors could have played a role in the growth of LTC in the ongoing bear market.
After November 23, Litecoin saw a 33.46% rise in its price. After that, the altcoin was observed to be trading in a range of $83.63 and $70.60.
After testing the $84.45 resistance level, Litecoin price started to decline. Its RSI at 38.40 at press time indicated that momentum was with the sellers.
The CMF Index is holding at -0.06, at press time, also indicating a bearish outlook for LTC. So, which indicates that there is a possibility that everything will return to 70.40 again.
For sale or not for sale
Litecoins MVRV increased sharply after November 20. A high MVRV ratio indicates that most Litecoin holders will make a profit if they end up selling their LTC.
However, the widening of the MVRV Long/Short Gap means that only long-term Litecoin holders will profit from selling their holdings.
Although there is an incentive for long-term LTC holders to sell their holdings For profit, they resort to HODLing instead. Surprisingly, this type of behavior is shown by short-term traders.