As things stand, crypto enthusiasts nowadays are only interested in opportunities to join the bandwagon. That has had the ‘buying the dip’ narrative trending each time BTC plunged within the past two months.
The same case appears to develop this time, with Bitcoin and other alt tripping the market capitalization, triggering a 5.66% slump that erased about $103 billion from the cryptocurrency marketplace.
Buying LTC Dip?
Surprisingly, most demand comes from Twitter, which has had its share of turmoil since Elon Musk purchased the social media site for $44 billion. Nevertheless, can this demand support Litecoin to record some upside actions?
First and foremost, LTC has registered a weak price performance than other alternative tokens. That comes as silver to BTC’s gold lost 15.53% over the week, slumping beneath $100, exploring value areas last seen by Litecoin a month ago, before which LTC touched the area at the start of 2021.
Though Litecoin registered retrievals and reclaimed $100 on April 27, it might not attract adequate demand to ensure a short-term upside. As the global market prepares for possible recoveries, market players should consider other tokens with an edge over LTC. However, Litecoin appears to flounder as a lucrative currency at the moment.
For now, top cryptos such as BTC, ETH, ADA, and XRP perform better than LTC. Though several alts seem to outshine Litecoin, these four have their price actions pretty similar to Litecoin’s, the reason we consider them for comparison sake.
Investors only concentrate on assets that promise lucrative returns, and LTC isn’t in the front line for that. Litecoin’s annual ROI remains negative. Also, BTC, XRP, and ADA had their ROI negative, though better than LTC. Meanwhile, Ethereum remains the only asset promising actual returns, notwithstanding a slight margin.
The MVRV ratio indicates that while BTC, XRP, and Ethereum maintain positive values beyond 1.0, LTC and ADA remain beneath the mark, with the former hovering at 0.86 and the latter at 0.92, at this publication. Therefore, everything goes to Litecoin’s utility, which remains insubstantial compared to these assets, keeping LTC’s presence minimal.
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