Meme coin lovers could also be having an ideal month, however Litecoin (LTC) hodlers are celebrating at present with their coin taking the spot because the second best-performing cryptocurrency within the high 100, with a bullish efficiency within the final 24 hours that noticed its price spike nearly 11%.
This comes on the fifth day of comparatively sluggish markets, with Bitcoin and Ethereum correcting by lower than 2% in the identical interval. The worldwide cryptocurrency market cap at present sits at $2.79 trillion, marking a mere -0.1% change within the final 24 hours.
Probably the most vital non-technical occasion contributing to Litecoin’s spike is a current assertion by the USA Commodity Futures Buying and selling Fee (CFTC). In a lawsuit against crypto exchange KuCoin, the CFTC declared Litecoin a commodity. This assertion is essential because it locations Litecoin exterior the scope of the Securities and Alternate Fee (SEC), which regulates securities and imposes stricter tasks on coin issuers.
“KuCoin solicited and accepted orders, accepted property to margin, and operated a facility for the buying and selling of futures, swaps, and leveraged, margined, or financed retail transactions involving digital belongings which can be commodities together with Bitcoin (BTC), Ether (ETH), and Litecoin (LTC),” the grievance reads.
Being declared a commodity probably opens the door for extra comfy endorsements and additional integrations for Litecoin, with much less worry of the SEC trying enforcement actions.
Litecoin began the day at $94.80 and traded sideways till 6am UTC, when bulls took over the markets and spiked the coin to its day by day excessive of $106 earlier than correcting barely to its present mark of $104.99. The coin is up 11.56% within the final 24 hours and 21.71% within the final week, plus 27.5% within the final 30 days. Friday marks the second greatest performing day of the yr for LTC, solely behind an 18.7% spike on March 11.
On the technical facet, Litecoin was buying and selling sideways throughout January and February, bouncing in a horizontal channel between $63 and $77. The coin broke its channel on February 29 and began a bullish pattern on March 1. Many of the constructive efficiency registered in 2024 has been as a result of March’s constructive outcomes. For the reason that backside of the channel to at present’s excessive, there was a roughly 63% spike.
Picture: Tradingview
Previous knowledge reveals that most of the unusually massive candlesticks are adopted by a correction of many small-bodied candlesticks within the days after. Litecoin failed to interrupt previous the resistance set by March 11’s spike, which might level to a doable cup-and-handle sample: An enormous spike adopted by a symmetrical interval of a correction, and a restoration that cancels all of the losses virtually in a semi-circle form. If that is so, there needs to be a smaller correction adopted by the same restoration earlier than a bullish breakout.
General, the coin appears bullish and wholesome in an extended timeframe. The Relative Energy Index (RSI) reveals that the coin is barely overbought with a 66% dominance of bulls over bears, with Litecoin proving its bullishness after bouncing from its Exponential Transferring Common (EMA) 55 and going again once more to commerce on high of the EMA 10.
Picture: Tradingview
On condition that the coin is bullish in charts set at 24 hour candlesticks and in weekly candlesticks for the primary time since June of 2023, an instantaneous resistance may very well be round $115 for a ten% achieve. If it stays strongly bullish, the following one seems to be close to $135 for a virtually 29% achieve. Nonetheless, if it fails to fulfill expectations and corrects down, it might drop someplace close to the $80 worth line for a -22.5% loss.
Edited by Andrew Hayward
The views and opinions expressed by the writer are for informational functions solely and don’t represent monetary, funding, or different recommendation.