What is the reason behind Litecoin’s (LTC) price surge, which goes against the bearish trend in the cryptocurrency market?
If you’ve been keeping an eye on the cryptocurrency market lately, you’ve probably noticed the gloomy trend affecting all the top cryptocurrencies like Bitcoin, Ethereum, Cardano, XRP, and even Solana. However, amidst this gloom, one token stands out.
Litecoin, in the midst of a sea of red, is swimming in green. In the past twenty-four hours, this altcoin has seen an increase of over 8% and is currently valued at $105.
But this impressive performance is not a fluke. Just two days ago, the Commodity Futures Trading Commission officially recognized Ethereum (ETH) and Litecoin (LTC) as commodities during a legal dispute with KuCoin. This is a significant achievement for Litecoin.
Adding to the positive news, Coinbase Institutional has introduced Litecoin Futures on its platform, instilling confidence in investors. But the developers of Litecoin have been busy as well. They recently released their latest update, Core v0.21.3.
This update focuses on enhancing the privacy and scalability of Litecoin through the adoption of MWEB (MimbleWimble Extension Blocks). These blocks act as a cloak for transactions, providing an additional layer of privacy and improving the fungibility and scalability of Litecoin.
The update also included technical improvements with LIP006 and its server component, making it easier to run a full node. All you need is a computer with over 160GB of free space to keep it running continuously.
In terms of price analysis, Litecoin has experienced a breakthrough. On March 29, it broke free from a restrictive overhead triangle pattern that had been in place for the past two years. This breakout signaled a significant shift in market dynamics and sentiment. Despite attempts to push it down, Litecoin remained resilient and bounced back from the $78 support level with a solid 7% gain in just one day.
Interestingly, data from IntoTheBlock highlights an upcoming on-chain resistance level for Litecoin at $150. This level represents a challenge for Litecoin, with approximately 8.16 million LTC held across 590,000 addresses. These holders bought in at that level and have been experiencing losses since December 2021. Reaching the $150 mark again will be intriguing, as it may trigger a selling frenzy from those seeking to break even.
In conclusion, Litecoin’s recent performance and updates have captured the attention of the cryptocurrency market. With its rise in value, recognition as a commodity, and improved privacy features, Litecoin is proving to be a standout token in an otherwise gloomy market.