The price of Litecoin soared 11% after the CFTC classified it as a commodity, boosting its market position.
Litecoin (LTC) showcased a remarkable 11% price increase over the past 24 hours, securing its position as the second highest gainer among the top 100 cryptocurrencies. This performance is noteworthy especially when juxtaposed with the modest movements of Bitcoin and Ethereum, which saw less than a 2% correction in the same timeframe. Currently, the global cryptocurrency market cap holds steady at $2.79 trillion, experiencing a minimal 0.1% dip over the last day.
CFTC’s Influence on Litecoin’s Bullish Run
The catalyst behind Litecoin’s impressive surge can be attributed to the United States Commodity Futures Trading Commission (CFTC) recently categorizing Litecoin as a commodity. This significant designation emerged from a lawsuit against the crypto exchange KuCoin, where the CFTC’s complaint outlined KuCoin’s engagements in commodity transactions involving Litecoin, among others. This classification is pivotal for Litecoin as it delineates it from securities, traditionally regulated by the Securities and Exchange Commission (SEC), thereby easing potential regulatory constraints.
Litecoin’s journey on the trading floor began at $94.80, with the price meandering sideways until a sudden uplift at 6 am UTC, propelling it to a daily high of $106. Despite a minor retraction, the coin’s value stabilized around $104.99, marking an 11.56% increase over 24 hours and a commendable 27.5% rise over the past month. March has been particularly generous to Litecoin, contributing significantly to its 63% increase since the end of February.
Technical Analysis
The technical analysis reveals Litecoin’s stability and bullish momentum, with indicators like the Relative Strength Index (RSI) displaying a strong preference for buying. The coin’s interaction with its Exponential Moving Average (EMA) suggests a sustained bullish trend, further supported by its current position above the EMA 10. With Litecoin’s performance improving for the first time since June 2023 on both daily and weekly charts, it stands on the brink of testing immediate resistance levels.
Anticipation builds as the coin eyes the $115 mark, promising a potential 10% gain. Should the bullish sentiment persist, the next hurdle lies at $135, potentially extending gains to nearly 29%. Conversely, a downturn might see Litecoin retracting to around the $80 mark, aligning with a 22.5% loss. This analysis indicates a vibrant future for Litecoin, bolstered by the CFTC’s recent classification and its ensuing market performance.