🚀 WHY IS LITECOIN PRICE UP TODAY? 🌕
Litecoin ($LTC ) surged today to reach a fresh two-week high, defying broader market trends and marking a notable uptick in its price trajectory. Here are the primary factors driving Litecoin's price rally:
1. Absorption of Previously Inactive LTC Supply: Litecoin's current price surge follows the absorption of a significant supply of previously inactive LTC tokens back into circulation. On March 5, over 600,000 #ltc tokens worth more than $60 million reentered the market after being untouched for at least five years. Despite an initial 19% decline in price, Litecoin has rebounded by 37.25% since, suggesting that the market has absorbed these tokens, akin to patterns observed before Litecoin's 2017 bull run.
2. Coinbase's LTC Futures Application: Coinbase's filing of an application with the U.S. Commodity Futures Trading Commission (CFTC) for cash-settled #Litecoin futures contracts has also contributed to Litecoin's price rally. The potential launch of these futures contracts in April could attract institutional capital to the LTC market, mirroring the effect of CME Bitcoin futures' launch in 2017.
3. Litecoin's Network Growth Ahead of Bitcoin Halving: Litecoin's robust network growth, exemplified by its record-high hash rate of 1.244 Peta-hash per second (PH/s) on March 22, indicates increasing miner confidence and profitability. With Bitcoin's fourth halving approaching in April, miners are allocating more computational power to mine and secure the Litecoin blockchain, bolstering trader optimism and driving up LTC's price.
From a TA perspective, Litecoin's rally has gained momentum after breaking above its multi-year descending trendline resistance.
Key indicators such as the weekly Relative Strength Index (RSI) and trading volumes suggest strong support for further upward movement. A bullish scenario could see LTC's price targeting the 0.236 Fibonacci retracement line at around $127.25 by April, while a retreat may lead to a retest of the descending trendline resistance turned support at $75.50.
