Commodity

Litecoin Breaks Macro Downtrend and Receives Commodity Status Amid Bullish Forecasts

The cryptocurrency market witnessed an intriguing development during the first quarter of this year, with Litecoin (LTC) exhibiting notable performance. The digital currency made an impressive stride beyond 30 million transactions by March 30. To put this feat into perspective, such numbers were not achieved until around July of the preceding year when LTC was being traded at approximately $113.

Adding to Litecoin’s promising performance, the US Commodity Futures Trading Commission (CFTC) recently conferred upon it the status of a commodity, alongside established cryptocurrencies such as Bitcoin and Ethereum. This unexpected designation, coupled with rampant rumors about a forthcoming Litecoin exchange-traded fund (ETF), kindled bullish sentiment among the cryptocurrency realm. Investors and analysts concomitantly predict a prosperous future for the digital token.

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Last week, Litecoin experienced a rapid surge of 10%, seemingly propelled by positive sentiment within its community. This boost saw the digital currency ascend beyond the $100 mark and test its resistance above the $105 level. As the first of April dawned, LTC achieved a significant milestone. According to crypto analyst Rekt Capital, LTC effectively broke the macro downtrend for the first time since April of 2021.

Rekt Capital further elaborated that the token underwent a successful retesting of its multi-year macro downtrend, turning it into a new support level. To cement the end of its trend, LTC was required to maintain its stance above the $94 price range. Leading into the closure of the month, LTC exceeded these levels, charging past the $110 mark for the second time this year. This triumph was short-lived, as a correction saw the digital currency tumble back to the $105-106 range.

Crypto analyst The Cryptonomist, in line with these developments, proposed that a ‘clean break’ above the resistance level could theoretically catapult LTC’s price to a staggering $200. This projection was nurtured by fellow crypto investor Crypto Surf, who was heartened by Litecoin’s performance in recent times.

The significant data points, according to Crypto Surf’s charts, include LTC’s second halving event in 2017, where the $146 pre-halving top was surpassed approximately three months after a breakout from its 200-week moving average (MA). This breakout event paved the way for LTC’s all-time high (ATH) of $410 in 2021.

Crypto Surf projected that LTC’s price could potentially breach higher resistance levels and establish a new ATH in the forthcoming months, provided history were to repeat itself. However, the analyst also acknowledged the unpredictability of market dynamics and external events which could pose a challenge to the token’s objectives.

The spike in LTC’s value to $112 can be attributed to a correction that stripped away the gains made over the previous weekend. Despite this setback, LTC maintained its foothold above $100 for the following three days. After a brief dip, LTC now oscillates around the $98-99 price range.

While it also witnessed a 3.8% decrease from its price 24 hours prior and a substantial 76.4% dip from its ATH, LTC continues to register positive growth over more extended timeframes. The crypto token reported an increase of 8.8% and 8.9% in the weekly and monthly timeframes, respectively, while a biweekly surge of 19.9% was also registered.

Further highlighting LTC’s promising status, its daily trading volume soared spectacularly by 186.5%, amassing $1.61 billion in just 24 hours. According to data from CoinMarketCap, LTC commands the nineteenth spot in the list of largest cryptocurrencies based on market capitalization.

In the latest trading updates, Litecoin currently stands at $99.13, reinforcing its pivotal position in the ever-evolving world of cryptocurrencies.


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