Litecoin price has maintained resilience as the broader crypto market suffered a bearish drawdown.
The US CFTC designation that Litecoin is a commodity remains one of its critical catalysts.

While the broader crypto market experienced a downturn with Bitcoin falling 6% on Tuesday, Litecoin (LTC) showed resilience as it surpassed the $105 price mark. Following this rise, the cryptocurrency has set its sights on the $150 resistance level.

Litecoin Price Shows Resilient Demonstration

Litecoin’s tenacity was demonstrated when its price soared above $105, up 6.8% intraday, indicating that traders continue to accumulate throughout market downturns. Litecoin, now holding the position of the 19th largest cryptocurrency, experienced a strong recovery trend in late March, with its price rebounding from the $77 support. 

The bullish reversal, aided by an ascending trendline, increased the coin’s value by 46% to a nine-month high of $112.8. On March 29, LTC saw a major move as traders broke out of an overhead triangular pattern that had been developing for the previous two years. Despite the recent market correction, Litecoin has shown incredible endurance, holding above the $78 support level and recovering with a 6.75% intraday gain.

One major factor contributing to Litecoin’s surge is the increased activities of miners on the network. As formerly reported by Crypto News Flash, miners have accumulated around 150,000 LTC, bringing their balances from slightly more than 2 million LTC in February to 2.2 million LTC by the end of March.

In a testament to Litecoin’s resilience, crypto analytics firm IntoTheBlock highlighted that Litecoin is one of the few top 100 assets that is now in the green. This achievement indicates that it has performed well since the Commodity Futures Trading Commission (CFTC) classified it as a commodity in the KuCoin case, per Crypto News Flash’s earlier announcement. 

$LTC is currently one of the select few assets in the top 100 that’s in the green today, showing strong performance ever since it was labeled a commodity by the CFTC. This move has led to 75% of $LTC holders now being in profit.

Looking forward, we’re eyeing a notable on-chain… pic.twitter.com/rkGaOSCHkB

— IntoTheBlock (@intotheblock) April 2, 2024

Amid this bullish trend, IntoTheBlock highlights that about 75% of LTC holders are currently seeing returns on their investments.

Litecoin’s Potential Resistance at $150

Looking into the future, Litecoin’s bullish pattern should hold if it can position above the rising trendline. Markedly, this would provide traders with a strong foundation on which to build the rally. Under ideal conditions, $195 may be the aim of the rebound trend. However, IntoTheBlock’s analysis warns of an imminent on-chain resistance level for LTC around $150.

The $150 threshold is critical as it represents a position where 8.16 million LTC, held by 590,000 addresses, was purchased historically. These holders have been losing money since December 2021, implying that the $150 level could be a big barrier point owing to probable selling pressure from these investors looking to break even.

At the time of writing, LTC is up 1.2$ and is trading at $101.21, with its market capitalization and trading volume standing at $7.5 billion and $1.3 billion respectively. Reflecting on Crypto News Flash’s prior findings, analysts claim that a deeper pullback in Bitcoin’s price might cause trouble for Litecoin, allowing it to breach the $90 support level and possibly fall to the next critical support level at $75.

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Filed under: Bitcoin - @ April 3, 2024 4:15 pm