Litecoin Rebounds 2% After U.S. Inflation Report

Litecoin, trading at $93.06, experienced a rebound after an overnight sell-off, gaining more than 2% and finding support near $93. This recovery aligned with broader market gains following a U.S. Consumer Price Index (CPI) report that indicated cooler-than-expected inflation.

Initially, Litecoin's price dipped after midnight UTC, retreating from a peak of $93.58 before stabilizing around $91 due to buy-side interest. The digital currency's price action over the past 24 hours ranged from $90.97 to $93.58, reflecting a 2.88% swing. The most significant drop occurred during peak Asian trading hours, with a 1.55% decline in minutes before finding support at $91.

As trading activity in the Americas resumed, high-volume buying propelled Litecoin back toward $92. The most active trading period occurred around midday UTC, with a notable recovery fueled by substantial trading volume. An ascending price channel appears to be forming, with resistance near $93.50 and support consolidating around $91. Despite a brief 3.4% drop in volatility, prices quickly stabilized, indicating that the $91 level is holding firm under pressure.

Market participants are speculated to be positioning ahead of a potential approval of a Litecoin exchange-traded fund (ETF). According to the analyst's forecast, there is a 90% probability of such an approval later this year, positioning Litecoin alongside Solana's SOL as leading candidates in a possible “Altcoin ETF Summer.”

Currently, Litecoin is hovering near $92.95, demonstrating signs of a steady recovery. The digital currency's price action and market dynamics suggest a bullish outlook, supported by potential regulatory developments and increasing investor interest.