By Michael Scott
Litecoin bucked the trend of sluggish market performance on Friday, March 29, with its price rallying 11% in 24 hours to rank second behind the meme coin Dogwifhat (WIF) surge.
Litecoin (LTC) holders joined the meme coin party in March and realized impressive performance. Litecoin took the spot for the second best-performing crypto with a historic bullish performance that saw the LTC price spike to nearly 11%, per CoinGecko data.
Litecoin Rally Defies Sluggish Market
The Litecoin rally occurred on the fifth day, when the crypto market had relatively sluggish performance, particularly with Ethereum joining Bitcoin to correct by below 2%. Bitcoin uptrend occurred as the global crypto market cap dipped by 0.1% to $2.8 trillion in the past 24 hours.
The Litecoin spike arises from a non-technical event following the US Commodity Futures Trading Commission (CFTC) disclosure in the suit involving the crypto exchange KuCoin. The Rostin Behnam-led Commission classified Litecoin within its scope as a commodity alongside Ethereum and Bitcoin.
The statement placed Litecoin outside the scope of the Gary Gensler-led Securities and Exchange Commission (SEC), which is mandated to regulate and oversee securities. The SEC has imposed stricter action on digital assets classified as securities in the past year.
CFTC Classifies Litecoin Commodity
The complaint by CFTC indicates that the crypto exchange KuCoin violated federal laws by soliciting and accepting orders alongside property-to-margin without seeking the requisite registration. The CFTC filing alleged that KuCoin offered a platform to trade futures and swaps and financed retail transactions involving several digital assets classified as commodities.
The declaration of Litecoin as a commodity yielded a comfortable endorsement for Litecoin and subsequent integration, given that holders have less fear of SEC enforcement.
Litecoin opened the day’s trading at $94.80 before a spell of sideways trading till the bulls seized the markets, leaving the coin’s price to spike to the day’s high of $106. Litecoin would correct slightly to exchange hands at $104, as per CoinGecko data.
A reflection on the Litecoin market activity shows the coin has rallied 11.6% in the past 24 hours, with its seven-day run at 21.7%. Its 30-day rally remained at 27.5%, with Friday’s spike becoming the second-best performance since the onset 2024 behind the 18.7% witnessed on March 11.
A quick technical assessment of Litecoin shows that the token has witnessed sideways movement in January and February. It bounced horizontally in the $63 – $77 range.
The bullish trend traces to March 1 when Litecoin broke the horizontal channel. Its positive performance arises from the March uptrend to rally by 63%.
Litecoin Set for Bullish Breakout
A review of the past performance illustrates that the subsequent correction of most large candlesticks in Litecoin occurred as multiple small-bodies candlesticks. Nonetheless, Litecoin struggled to break past the resistance realized following the March 11 spike, indicating a potential cup-handle pattern.
Litecoin’s past performance portrays a big spike that attracts a symmetrical period when it corrects. A recovery would ultimately cancel all losses in the semi-circle shape. A repeat of this pattern indicates that Litecoin will likely experience a minor correction before welcoming a similar recovery before a bullish breakout.
The coin appears bullish and destined to sustain healthy performance in the long run. Its Relative Strength Index (RSI) illustrates that Litecoin is mildly overbought, with bulls exercising 66% dominance over the bears.
Litecoin proves bullish after recovering from the Exponential Moving Average (EMA) 55. The Litecoin rally coincided with the coin regaining to exchange hands above EMA 10.
Market experts consider that with Litecoin portraying bullish signs from the 24-hour and weekly candlesticks since mid-2023, immediate resistance could arise near $115.
Experts predict that if Litecoins garners strong bullish steam, it could establish resistance near $135. Nonetheless, failure to satisfy the expectations would cause the coin to plunge and be corrected by 22% to exchange hands near the $80 level.