What follows for the LTC story?

After the federal reserves decided to retain interest rates unchanged, the crypto market maintained constant growth. Among them, Litecoin stands out in the Altcoin sector, recording significant double-digit gains in just a few hours. This increase has affected several metrics on the chain, suggesting that Litecoin’s price is currently overrated. This could lead to a strong pressure of sales if the LTC price struggles to break through the resistance level.

Litecoin Mvrv declines despite the rise in price

Litecoin faced an increased demand for buying after a rumor about the Exchange Fund based on Litecoin (ETF). At the Polymarket, a decentralized predictions market, the KRIPTO bookmaker has achieved 87% of the chance that the US Securities and Exchange Commission (SEC) will be approved by the Exchange (ETF) fund this year, based in Litecoin.

Hopes among investors increased after the Sec’s period began a public comment on the proposed Canary Litecoin ETF. The public has 21 days from the announcement to submit feedback, which will help SEC to decide whether to approve of ETF.

Also Read: Why Litecoin Price has increased today: Key factors running your 14% rush

After the commentary period, SEC has 45 days to make a decision, which can be extended to 90 days, if necessary, for approval, rejection or additional examination of ETF.

Due to this news, increased purchase pressure at LTC prices occurs. Intotheblock data indicate that the ratio of MVRV for Litecoin falls, although the price of LTC is rising. Currently, the ratio is 1.23, suggesting that the last realized value is closer to the market value of the LTC.

Declaining the ratio of MVRV in the middle of an increase in prices can suggest that, although prices are increased, the value that owners achieve does not support this increase in prices, indicating potential overall.

Eric Balchunas, an analyst ETF from Bloomberg, pointed out that this is the first Altcoin ETF to arrive so far away, showing significant progress in the approval procedure. However, it is still unclear whether the SEC will accelerate its decision or use the entire period of 240 days.

What follows for the LTC story?

The Litecoin Price faces an increase in demand for purchases as customers have pushed the price with a low $ 110 to a recent maximum of $ 134. Currently, customers hold the price above 23.6% of FIB level to stabilize the momentum in the purchase zone. According to writing, the LTC price traded in the amount of $ 131.6, increasing over 17.1% in the last 24 hours.

The growing 20-day Emma to $ 119, and RSI over 69 suggests that customers currently have an advantage. If the LTC breaks down and closed above the descent line, it could go for a rally according to $ 150 and may extend to $ 165.

On the other hand, if the price suddenly moves from the lower trend, it means that sellers still affect higher prices. This could make them try to push the LTC/USDT pair back toward the 50-day SMA to $ 120.