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What’s next for Litecoin after 6% fall

2min Read

More traders could be affected as LTC readjusts to increased regulatory pressure in the US after the Binance lawsuit.

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • US SEC didn’t categorize LTC, but CFTC mentioned it as a commodity in March.
  • Long positions discouraged.

The US SEC’s lawsuit against Binance for securities laws violations has set the market into a sharp correction. Another CFTC filing in March against Binance singled out Litecoin [LTC], Ethereum [ETH], Bitcoin [BTC], and Binance USD [BUSD] as commodities. 


Is your portfolio green? Check out the LTC Profit Calculator 


Although the recent US SEC is similar to the earlier CFTC filing, LTC hasn’t been mentioned as a security. At the same time, MATIC, SOL, ADA, and more have been singled out as securities.  

LTC depreciated 6% in the past 24 hours and traded at $87.5 at press time. Similarly, BTC dropped below $26k as investors reacted to the news. 

Will sellers push lower?

Source: LTC/USDT on TradingView

With a weak BTC and an upcoming FOMC meeting in mid-June, LTC could reverse May gains if sellers intensify control. Notably, the RSI (Relative Strength Index) retreated to the oversold zone, denoting increased selling pressure. 

As such, LTC could breach the $84 support and drop to the demand zone of $74 -$78 (cyan). The demand zone is also a bullish order block (OB) formed on 13 March on the 4-hour chart. 

On a bullish angle, a recovery attempt could be likely if the $84 support holds. Notably, the Accumulation/Distribution indicator has risen steadily since late May, highlighting an accumulation trend. 

Hence, LTC could clear the $89 hurdle and retest $95, especially if BTC reclaims $26k. Moreover, the weekly chart was still bullish despite retreating to a near-neutral position as of press time. 

Long positions discouraged

Source: Coinglass


How much are 1,10,100 LTCs worth today


On the 4-hour timeframe, LTC saw over $80k of long positions wrecked compared to about $20k of short positions. It means the liquidation of long positions was four times greater than short positions, reiterating the short-term bearish outlook for LTC on the futures market. 

Next week’s likely Fed rate hike could make a strong rebound elusive for LTC bulls. As such, tracking BTC’s movement is crucial before moving forward. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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