Meme coin enthusiasts may be having a great month, but Litecoin (LTC) hodlers today saw bullish performance in the last 24 hours of price confirmation, making it the second-best performer among the top 100. They are celebrating that their coin has achieved the status of virtual currency. It jumped nearly 11%.
This occurred on the fifth day of a relatively weak market, with Bitcoin and Ethereum correction rates of less than 2% during the same period. The current global cryptocurrency market capitalization is $2.79 trillion, with a change of only -0.1% in the past 24 hours.
The most important non-technical event that contributed to Litecoin's surge was the recent statement by the US Commodity Futures Trading Commission (CFTC). In its lawsuit against cryptocurrency exchange KuCoin, the CFTC declared Litecoin a commodity. This statement is extremely important as it puts Litecoin outside the purview of the Securities and Exchange Commission (SEC), which regulates securities and imposes stricter responsibilities on coin issuers.
“KuCoin solicited and accepted orders and deposited assets into margin for Bitcoin (BTC), Ether (ETH), and Litecoin (LTC),” the complaint says.
Once declared as a commodity, there would be less fear of enforcement attempts by the SEC, potentially opening the door to more comfortable approval and further consolidation of Litecoin.
Litecoin started the day at $94.80 and traded sideways until 6:00 a.m. UTC, after which the bulls took control of the market and sent the coin soaring to an intraday high of $106. It has been revised slightly to the current price of $104.99. The coin has gained 11.56% in the past 24 hours, 21.71% in the last week, and an additional 27.5% in the past 30 days. Friday was his second best performing day of the year for LTC, behind his 18.7% surge on March 11th.
On the technical side, Litecoin traded sideways from January to February, bouncing in a horizontal channel between $63 and $77. The coin broke the channel on February 29th and started a bullish trend on March 1st. Most of the positive performance recorded in 2024 is due to the positive results in March. From the bottom of the channel to today's high, there was a roughly 63% spike.
Image: Tradingview
Historical data shows that many abnormally large candlesticks are accompanied by corrections of many small solid candlesticks after a few days. Litecoin failed to break through the resistance set by the March 11 rally, but this could indicate a possible cup-and-handle pattern: a big rally followed by symmetrical A period of adjustment follows, followed by a recovery that wipes out all losses in approximately half a year – circular. In this case, a bullish breakout should be preceded by a smaller correction followed by a similar recovery.
Overall, the coin looks bullish and healthy on a long-term time frame. The Relative Strength Index (RSI) shows the coin is slightly overbought with bulls outnumbering bears by 66%, and Litecoin is back on track after rebounding from its Exponential Moving Average (EMA) of 55. It has proven to be bullish as it has risen and traded at its highest price. EMA10.
Image: Tradingview
Given that the coin is bullish on the chart set on 24-hour candlesticks and weekly candlesticks for the first time since June 2023, immediate resistance could be around $115, a 10% increase. If the bullish trend continues, the next move could be around $135, an increase of nearly 29%. However, if the price does not meet expectations and is revised downward, it could drop to around the $80 price line, resulting in a -22.5% loss.
Edited by Andrew Hayward
The views and opinions expressed by the authors are for informational purposes only and do not constitute financial, investment, or other advice.
