After hitting a low point of $0.1707 last week, LMWR token has seen a significant uptrend, reaching a 5-month high of $0.47.
However, following this rapid price increase, a correction took place. Currently, as of the time of writing, LimeWire is trading at $0.3975, reflecting a 62.13% surge over the last 24 hours.
During the same timeframe, the trading volume of this digital asset has skyrocketed by 672.12% to reach $56.92 million while its market cap has risen by 51% to $114.42 million.
Moreover, on weekly and monthly charts, LMWR has shown impressive growth, with gains of 103.46% and 226.74% respectively. Despite these positive movements, LMWR is still trading approximately 79.53% below its all-time high of $1.92.
Following the recent price surge, one question arises – Can LimeWire sustain this upward momentum?
Is LMWR’s Rally Sustainable?
Per the analysis by CryptoCrypto, LMWR is currently witnessing a robust upward trend, indicating heightened buying activity with buyers taking control of the market.
The dominance of buyers is evident in the increasing Stoch RSI, which spiked to 99 after a bullish crossover a week ago, signifying higher buying pressure compared to selling pressure.
This dominance is further corroborated by a positive CMF, with LimeWire’s Chaikin Money Flow (CMF) currently standing at 0.06, indicating a buyer-heavy scenario.
Additionally, LimeWire’s MVRV ratio Z score is on the rise but remains below zero. The MVRV score now reads -11.63, showing a slight increase from the previous -12.19.
With a negative MVRV score, it suggests that LMWR’s current price is below the average cost basis, portraying the digital asset as undervalued by the market.
Historically, a negative Z score has presented a buying opportunity, leading to market recovery as the undervaluation attracts increased buying interest, thereby mitigating selling pressures.
Consequently, this suggests that LMWR is currently underestimated and possesses growth potential as its true value is yet to be realized by the market.
In essence, LimeWire could be undervalued, offering an opportunity for buyers that has resulted in strong purchasing activity. With buyers dominating the market and positive market sentiment, LMWR stands a chance to reach higher price levels.
Therefore, under current market conditions, the next significant resistance for the altcoin could be at around $0.70.