During the week beginning Monday, February 26, the price of the Litecoin cryptocurrency broke the long-term bearish trend, signaling a change in trend. The price action of this pioneering cryptocurrency in the bitcoin industry has lagged behind the market in general. According to the TradingView chart that takes the Binance quote of the LTC/USDT pair, Litecoin proved to be in the middle of a trend change on the weekly chart.
Breaking a trend indicates different movements in a cryptocurrency. Source: Tradingview This price action is curious considering that the cryptocurrency It hit market bottoms during the month of June 2022.
Since then, the cryptocurrency has charted a lateral range in its price, going from almost 50 dollars to 115 and returning again to the area of 50 dollars per unit. From the first declining high exhibited at the end of the previous bull market to the break of the bearish trend, Litecoin has fallen or lateralized for more than 900 days.
Litecoin has been slow to catch up with the rest of the market. Source: Tradingview According to trader Rekt Capital, “Litecoin is up +22% since successfully retesting its multi-year macro bearish trend as new support.” With this retest, the cryptocurrency tested the support of its new “macrobullish” trend for three weeks in a row. For this trader, it is key that LTC continues to be above USD 94. If this short-term upward rally continues, the currency would end up shaking off a lethargy that has lasted more than two years. Left to its own inertia, Litecoin does not seem, at first glance, to be the most attractive crypto asset on the market in terms of price appreciation potential. However, the current price increases could be driven by fundamental reasons.
Fundamental reasons affect Litecoin price
One of these reasons is that the United States Commodity Futures Trading Commission (CFTC) insists on qualifying Litecoin as a commodity, that is, as a commodity or valuable resource similar to energy, agricultural products, stores of value such as precious metals or certain financial products. Due to the similarity of its protocol with that of bitcoin, some users have speculated about the possibility of seeing a Litecoin ETF. However, these are just rumors, and Ethereum ETFs are the financial products that are waiting to be approved or denied by the United States Securities and Exchange Commission (SEC). According to certain perspectives, the approval of an ether ETF would make the design and approval of this type of financial products feasible. for many more tokens and cryptocurrencies of the industry.