Will Litecoin [LTC] fall victim to market talk as this investment guru says…

  • Analysts declared that Litecoin may be wiped out from the market, along with two other cryptocurrencies
  • LTC traders opted for unbias as investor sentiment remained negative

Chairman of the CNBC Investing Club, Jim Cramer, categorized Litecoin [LTC] as one of the cryptocurrencies that may not see the light of another day for years to come. Appearing in an interview with CNBC’s Squawk Box, Cramer also added Ripple [XRP] and Dogecoin [XRP] to the list that may face extinction.

Read Litecoins [LTC] Price prediction 2023-24

Speaking to host Becky Quick, the “bull market finder” believed his negativity was born out of investors’ disregard for the assets. However, Cramer’s assessment may sound surprising, especially as LTCs value increased 9.38% in the last 30 days.

Moreover, more the development followed Litecoin’s performance between random social peaks. Nevertheless, it may also not be a shock since the investors had been a constant critic of other cryptocurrencies apart Bitcoin [BTC] and Ethereum [ETH].

Traders prefer not to take sides

Regardless of the situation, Litecoin traders remained in a neutral position. According to on-chain data, Litecoin’s discovery rate on the Binance exchange was 0% as of December 17. Since it was neither positive nor negative, it implied no dominance among short and long traders.

Source: Sentiment

In terms of open interest, Litecoin traders seemed to have a change of heart. As of 17 December, the 24-hour rate was primarily in decline. Data from Coinglass showed reduced attention to LTC across several exchanges. Therefore, Cramer’s opinion that no one found interest in the coin seemed to have any elements of justification.

Further evaluating traders’ activity with LTC, the derivatives information portal revealed that longs-shorts ratio was 0.95. The indicator illustrates the amount of Litecoin available for short selling against those that are literally being sold. In addition, it serves as a measure of projected investor expectations.

At the time of writing, LTC’s short sales were 51.32% while long sales were 48.68%. Since it turned out to be a low ratio, it indicated negative investor expectations.

Bitcoin long/short position ratio

Source: Coinglass

Now is the season to endure

Indications from the 30-day market value to realized value (MVRV) ratio reflected massive falls in profit for owners since November 23. Based on Santiment data, the MVRV ratio declined to -13.44%. This status suggested that Litecoin was in a bubble territory where it showed no certainty that the coin’s value was fair or not.

According to the development activity, Litecoin has remained stuck in its flatline state since November 25th. Up to the time of writing on December 17, the development activity was 0.05.

Therefore, Litecoin had not added any notable upgrades to the network. Still, the current market may be a bad season to conclude whether Litecoin would be wiped out or otherwise.

Litecoin development activity and MVRV ratio

Source: Sentiment

Leave a Reply

Your email address will not be published. Required fields are marked *