Benzinga - On-chain fundamentals may be part of the reason Litecoin (CRYPTO: LTC) saw a sharp price increase during the ongoing market downturn caused by the collapse of the major crypto exchange FTX.
What Happened: Litecoin's current price of $78.21 is 34.64% higher than its value seven days ago, while Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) lost value over the same length of time, according to CoinMarketCap data.
Data provided by on-chain analytics service provider Glassnode may shed some light on Litecoin's upwards movement.
See Also: LITECOIN (LTC) PRICE PREDICTION
Why It Matters: Glassnode data showed Litecoin's reserve risk stands at 0.00049984. This was usually used to estimate the confidence of long-term holders compared to the price of the token. When the confidence is high and the price is low, the reserve risk number is low and it is usually seen as a buy signal since it suggests an attractive risk-reward ratio.
Another chart showed Litecoin's MVRV Z-Scpre currently stands at -0.40282131, at the bottom edge of the "buy zone." This metric is used to assess the undervaluation and overvaluation of an asset and it currently suggested Litecoin was trading under its fair price.
The Puell Multiple was also in the buy zone, currently reading 0.75399149 according to Glassnode data. The Puell Multiple was obtained by dividing the daily issuance value of the asset in dollars by the 365-day moving average of the daily issuance value. The current reading of this metric was in the so-called "buy zone."
Read Next: Here's How Much $100 Invested In Litecoin (LTC) Would Be Worth If It Touched Its All-Time High Again
CLICK HERE to sign up for Benzinga's Future of Crypto conference on Dec. 7 in New York City. The BIGGEST day of the year for crypto enthusiasts, entrepreneurs, investors and networkers to discover the #1 crypto ideas you can use today — directly from hundreds of industry insiders and dozens of project creators.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.