25 April, 2024

LTC Defies Odds with 8.9% Surge – What’s Fueling the Rally?

03 Apr, 2024

03 Apr, 2024

  • LTC’s classification as a commodity by the CFTC coincided with its surge, leading to 75% of holders in profit.
  • On-chain resistance at $150 could pose a challenge, with holders seeking to break even after a prolonged period of loss.
  • Despite technical indicators suggesting caution, LTC’s bullish momentum is supported by increasing transaction volumes and whale activity.

Litecoin (LTC) has emerged as a standout performer in the cryptocurrency market, defying the broader trend of red numbers among the top 100 assets. As highlighted by IntoTheBlock, this surge in performance coincided with the classification of LTC as a commodity by the U.S. Commodity Futures Trading Commission (CFTC). As a result, a staggering 75% of LTC holders find themselves in profit, marking a significant milestone for the digital asset.

The rally in LTC’s price trajectory has been propelled by various factors, with notable on-chain resistance looming around the $150 mark. Historical data indicates that approximately 8.16 million LTC, held by 590,000 addresses, were acquired at this level. 

These holders have endured a prolonged period of loss since December 2021, potentially forming a formidable resistance point as they seek to break even. As further noted by Santiment, an analytic firm, in the past 24 hours, Litecoin has outpaced many alternative cryptocurrencies (altcoins), boasting an impressive 8.9% increase in value. 

This surge is underpinned by substantially higher transaction volumes observed over the past month. Moreover, an intriguing trend is unfolding as the average age of LTC investments decreases, suggesting that whales are redistributing coins back into circulation.

Litecoin 1-Day price chart, Source: TradingView

With the current live price of Litecoin hovering around $101.66 and a 24-hour trading volume exceeding $1.6 billion, the bullish momentum appears to be gaining traction. The 1-Day Relative Strength Index (RSI) stands at 56.82, indicating that LTC is neither overbought nor oversold. However, caution is warranted as the 1-Day Moving Average Convergence Divergence (MACD) is trading below the signal line, potentially signaling a bearish trend in the offing.

Nevertheless, the 1-Day Know Sure Thing (KST) indicator presents a contrasting view, with LTC’s momentum appearing bullish in the short term, as it trades above the signal line. This divergence in technical indicators underscores the inherent volatility and uncertainty characterizing the cryptocurrency markets.


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