- LMWR surged 62.13% in the last 24 hours.
- Market indicators suggest that LimeWire is still undervalued.
Since hitting a local low of $0.1707 a week ago, LimeWire (LMWR) has seen a strong rise to a 5-month high of $0.47.
However, since this price surge, the market has seen a correction. In fact, at the time of writing, LimeWire was trading at $0.3975. This represents an increase of 62.13% in the last 24 hours.
During the same period, the altcoin’s trading volume jumped 672.12% to $56.92 million, while the market capitalization jumped 51% to $114.42 million.
Likewise, it gained on the weekly and monthly charts, increasing by 103.46% and 226.74%. Despite this price increase, LMWR remains approximately 79.53% below its all-time high of $1.92.
The question after the recent surge is whether LimeWire can sustain the rally.
Can LMWR maintain its rally?
According to AMBCrypto analysis, LMWR is currently experiencing strong bullish momentum. As such, the altcoin is under increased buying pressure with buyers dominating the market.
Source: Tradingview
We can see this dominance of buyers through a rising Stoch RSI. After making a bullish cross a week ago, this figure reached 99. Such a rise shows that buying pressure is greater than selling pressure.
This phenomenon is also evidenced by a positive CMF. At press time, LimeWire’s Chaikin Money Flow (CMF) was 0.06, implying that buyers are prevailing over sellers.
Source: Santiment
Looking further, LimeWire’s MVRV ratio Z-score remains below zero even as it increases. Thus, the MVRV score was -11.63 at the time of writing after a slight increase from -12.19.
When the MVRV score is negative, it suggests that the current price of LMWR is below the average cost basis, implying that the market is undervaluing the altcoin.
Historically, a negative Z score creates a buying opportunity. As such, this rally precedes the market as undervaluation attracts more buying pressure, thereby reducing the impact of sellers.
Therefore, this indicates that LMWR is undervalued and has room to grow, as the market is yet to realize its true value.
Simply put, LimeWire is potentially undervalued. These lower prices created a buying opportunity which resulted in strong buying pressure. As buyers dominate the market in bullish sentiment, LMWR could realize more price gains.
Therefore, if current conditions remain, the altcoin will find the next resistance around $0.70.
