Litecoin price rises after CFTC calls it a commodity alongside Bitcoin and Ethereum

It might be a good month for meme coin lovers, but Litecoin (LTC) bettors are celebrating with their coin taking the spot as the second best-performing cryptocurrency in the top 100, with its price outperforming over the past 24 hours. It increases about 11%.

This comes on the fifth day of a relatively slow market, with Bitcoin and Ethereum correcting less than 2% over the same period. The global cryptocurrency market cap today stands at $2.79 trillion, a 0.1% change in the last 24 hours.

The most important non-technical event that contributed to the Litecoin spike was the recent statement from the United States Commodity Futures Trading Commission (CFTC). In a lawsuit against crypto exchange KuCoin, the CFTC has declared Litecoin a commodity. This statement is important because it places Litecoin outside the purview of the Securities and Exchange Commission (SEC), which oversees security issues and imposes strict responsibilities on coin issuers.

“KuCoin solicited and accepted orders, received assets on margin, and marketed futures, exchanges, and retail transactions, distributed or funded digital assets including Bitcoin (BTC), Ether (ETH), and Litecoin (LTC),” the complaint reads.

Being declared a commodity opens the door to more favorable support and more integration for Litecoin, less fear of the SEC trying enforcement actions.

Litecoin started the day at $94.80 and traded sideways until 6pm UTC, when bulls dominated the markets and boosted the coin to $106 on the day, with a slight correction at $104.99. The coin has gained 11.56% in the last 24 hours and 21.71% in the last week, as well as 27.5% in the last 30 days. Friday marked LTC's second best performance of the year, up just 18.7% from March 11.

On the technical side, Litecoin traded sideways in January and February, moving in a horizontal channel between $63 and $77. The coin broke the channel on February 29 and started a downtrend on March 1. Most of the positive performance in 2024 was accounted for by positive results in March. From the bottom of the channel to today's high, there is an increase of about 63%.

Past data shows that many unusual large candlesticks are followed by many smaller body candlesticks in subsequent days. Litecoin It failed to break through the resistance set by the March 11 appointment, which could point to a cup-and-hold pattern: a large spike followed by a reasonable correction period, followed by a recovery that cancels out half of all losses. – Round shape. If this is the case, a small correction should be made before the breakdown of the breakdown and then the same recovery.

Overall, the coin looks bullish and healthy in the long term. The Relative Strength Index (RSI) shows that the coin is slightly overbought with a 66% dominance of bulls, while Litecoin has risen above the Exponential Moving Average (EMA) of 55 and retraces again, showing a dominance of bulls over bears. EMA 10.

As the coin is bullish on the charts for the first time since June 2023 on the 24-hour candlesticks and weekly candlesticks, an immediate resistance could be around $115 for a 10% gain. If it continues strong, the next round looks to be around $135 for a gain of around 29%. However, if it fails to meet expectations and corrects, it could drop somewhere near the $80 price line -22.5% loss.

Edited by Andrew Hayward.