- Litecoin showed incredible fortitude throughout a market collapse, rising past $105 after holding above $93.
- Maintaining above an ascending trendline and dealing with on-chain resistance above $150 are two possible obstacles for Litecoin that could arise in the future, despite its current trend.
This was a rough week for cryptocurrency. Bitcoin, the most valuable digital asset, fell by 6%, and altcoins were not immune to the widespread sell-off that followed. Litecoin (LTC), on the other hand, showed an amazing amount of strength by staying above $93 and then amazingly rising to levels above $105.
This performance shows that people who buy Litecoin are still confident, as they continue to take advantage of market drops to buy more.
Recovery that is Strong
People often call Litecoin “the silver to Bitcoin’s gold.” Since late March, it has been on a clear path to recovery. LTC went on a bullish journey after bouncing back from the crucial support level of $77, with the aid of a rising trendline that drove its value up by 46% and to a 9-month high of $112.8.
During market corrections, buyers can find appropriate support for a retreat from the midline of the Bollinger Band, and an increase in the ADX slope at 24% indicates that buyers have enough momentum to drive a subsequent recovery.
This rise wasn’t just a random spike; on March 29, it clearly broke out of a long-standing overhead triangle pattern. This was the start of a big change in the way the market works that had been building for over two years.
Even though the market as a whole was going through a correction phase, Litecoin’s price remained strong and stayed above the $78 support level. This toughness led to a respectable 6.75% daily gain to $101, which showed how strong the asset is in the market and how confident investors are in it.
This kind of determination is especially impressive given how unstable the market is right now. It shows that Litecoin could be a good investment during times of instability. Also, the CFTC officially declared Litecoin a commodity, increasing its market potential, as previously reported by ETHNews.
Bullish Prospects and Challenges Ahead
According to the analytics company IntoTheBlock, this has put LTC in the green zone, where about 75% of holders are now making money on their investments. If this upward trend stays above the rising trendline, it could lead to a further rise, with the high goal of $195 in mind.
$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
The trip does not, however, come without problems. IntoTheBlock’s research also shows that there will soon be an on-chain resistance level of $150, which is a key level where a lot of LTC is held.
This level is a turning point for Litecoin because it’s where 8.16 million LTC owned by 590,000 addresses come together, marking an important point in history for buying.