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Litecoin (LTC) Hits 7-Day High Amid CFTC Commodity Buzz, Will the Bull Rally Last?

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Litecoin (LTC) Hits 7-Day High Amid CFTC Commodity Buzz, Will the Bull Rally Last?

Litecoin (LTC) has been on a bullish streak in the last 24 hours, recording a 7-day high after finding support at the intra-day low of $87.78. This surge occurs in the light of supportive trends in the cryptocurrency market, particularly the news by the Commodity Futures Trading Commission (CFTC) about Litecoin being a commodity in the KuCoin case. This classification has attracted attention from both investors and traders, leading to the price of LTC gaining positive momentum.

LTC/USD 24-hour price chart (source: CoinStats)

The bullish momentum was still in charge by press time, and LTC’s price was up $95.63, a 4.96% rise from the intra-day low, although it had been seen as resistant at $96.97. Simultaneously, 4.06% and 105.86% growth were observed in the market capitalization and 24-hour trading volume, which reached $7,112,289,305 and $1,185,293,147, respectively.

Coinbase Futures Trading Announcement

Among the reasons that started off the rapid price appreciation of Litecoin is the announcement that Coinbase is going to start offering cash-settled futures contracts for Litecoin. The move is intended to improve accessibility and liquidity for Litecoin traders and is subject to CFTC’s approval.

Looks like BCH, LTC and DOGE futures go live April 1 on Coinbase

— Scott Johnsson (@SGJohnsson) March 21, 2024

The trading of these futures contracts is expected to start in the first week of April – subject to regulatory approval, and market participants are looking forward to the potential rise in Litecoin’s trading volumes and investor interest. Consequently, the expectation of improved liquidity and availability through futures trading makes Litecoin bullish.

Litecoin Adoption on the Rise

Adding more to the positive momentum for Litecoin is a signal of an explosion in adoption. According to recent on-chain data, the number of addresses that own Litecoin has exceeded 8 million, which represents a significant increase in the user base of this cryptocurrency. Such a spike in usage is due to the growing popularity of Litecoin among cryptocurrency users for its fast transaction speeds and low fees.

The total number of addresses with a balance on the Litecoin Network continues to grow! Currently at 8 million and adding over a MILLION hodlers since this time last year!! $LTC ⚡️ #HODL

— Jay Ⓜ️🕸️ (@MillaLiraj) March 25, 2024

Moreover, according to Eleanor Terret, the clarification by the CFTC of Litecoin as a commodity is a reaffirmation of Litecoin’s position within the regulatory framework and also sets a path for a broad range of financial products and services related to Litecoin, including ETFs and other derivative products.

The potential for Litecoin futures trading, subject to CFTC approval, represents a significant milestone for the cryptocurrency, as it would facilitate broader market participation and potentially attract institutional investors. The prospect of such developments has contributed to the positive market sentiment and has been reflected in the recent price movements of Litecoin.

LTC/USD Technical Analysis

The Rate of Change (ROC) rating of 4.76 on the LTCUSD 4-hour price chart suggests that the price has steadily increased in recent hours. This shows that Litecoin may be gaining momentum in the near term.

Furthermore, the Chaikin Money Flow (CMF) rating of 0.11 indicates that there is still some purchasing pressure in the market, but it is insufficient to maintain the present positive trend. This might imply that Litecoin may face some consolidation or a minor setback before continuing its upward trajectory. If the CMF rating continues to fall and the ROC rating becomes negative, it might indicate a change toward bearish momentum in the long run.

Litecoin (LTC) Hits 7-Day High Amid CFTC Commodity Buzz, Will the Bull Rally Last?

Litecoin (LTC) Hits 7-Day High Amid CFTC Commodity Buzz, Will the Bull Rally Last?LTC/USD 4-hour price chart (source: TradingView)

The Moving Average Convergence Divergence (MACD) has moved above its signal with a rating of 2.3766, indicating that the market still has some short-term positive momentum. The MACD histogram also suggests a rise in positive momentum, indicating that Litecoin may still have the potential to continue its upward trend in the foreseeable future. This pattern suggests that, while there may be some consolidation or a modest retreat in the short term, the general picture for Litecoin is favorable.

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