Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- US SEC didn’t categorize LTC, however CFTC talked about it as a commodity in March.
- Lengthy positions discouraged.
The US SEC’s lawsuit in opposition to Binance for securities legal guidelines violations has set the market into a pointy correction. One other CFTC filing in March in opposition to Binance singled out Litecoin [LTC], Ethereum [ETH], Bitcoin [BTC], and Binance USD [BUSD] as commodities.
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Though the latest US SEC is much like the sooner CFTC submitting, LTC hasn’t been talked about as a safety. On the identical time, MATIC, SOL, ADA, and extra have been singled out as securities.
LTC depreciated 6% previously 24 hours and traded at $87.5 at press time. Equally, BTC dropped beneath $26k as buyers reacted to the information.
Will sellers push decrease?
Supply: LTC/USDT on TradingView
With a weak BTC and an upcoming FOMC assembly in mid-June, LTC may reverse Might positive aspects if sellers intensify management. Notably, the RSI (Relative Energy Index) retreated to the oversold zone, denoting elevated promoting strain.
As such, LTC may breach the $84 assist and drop to the demand zone of $74 -$78 (cyan). The demand zone can be a bullish order block (OB) fashioned on 13 March on the 4-hour chart.
On a bullish angle, a restoration try might be seemingly if the $84 assist holds. Notably, the Accumulation/Distribution indicator has risen steadily since late Might, highlighting an accumulation development.
Therefore, LTC may clear the $89 hurdle and retest $95, particularly if BTC reclaims $26k. Furthermore, the weekly chart was nonetheless bullish regardless of retreating to a near-neutral place as of press time.
Lengthy positions discouraged
Supply: Coinglass
How a lot are 1,10,100 LTCs price at present?
On the 4-hour timeframe, LTC noticed over $80k of lengthy positions wrecked in comparison with about $20k of brief positions. It means the liquidation of lengthy positions was 4 occasions higher than brief positions, reiterating the short-term bearish outlook for LTC on the futures market.
Subsequent week’s seemingly Fed charge hike may make a robust rebound elusive for LTC bulls. As such, monitoring BTC’s motion is essential earlier than shifting ahead.
