Litecoin Surges 11% Despite SEC ETF Delay

Litecoin (LTC), a Layer 1 cryptocurrency, has shown significant resilience in the face of recent market challenges. Despite the negative news of the U.S. Securities and Exchange Commission (SEC) delaying the Litecoin Spot ETF application by Canary Capital, Litecoin has managed to secure an 11% surge, pushing its price above $90. This performance has been a highlight in the market, as it defies the typical reaction to such negative news.

In the short term, Litecoin's performance readings indicate a corrective approach, but its long-term performance remains impressive, fueling new high cycles. The asset's ability to regain the $90 zone has bolstered confidence in Litecoin, despite increased selling pressure. Key indicators such as the Moving Average Convergence Divergence (MACD) and the Chaikin Money Flow (CMF) suggest an upcoming cooling period and potential selling. The CMF indicator, which measures buying and selling pressure, is currently at the center line (0), indicating weakening buying pressure despite the rising prices.

On the other hand, Litecoin's on-chain data, specifically the Network Realized Profit/Loss (NPL), shows an increase in several unrealized gains. This could potentially turn the LTC market greedy at any moment. The weekly chart of LTC/USD reflects its admirable performance since July 2022, creating an upward channel while attempting a horizontal breakout three times. After being rejected by the top and experiencing a dramatic drop below the reversal, the price is now nearing the center line, which is at the $100 mark. The Relative Strength Index (RSI) is approaching 50 from the bottom, and the MACD is heading toward closing to 0, showing the momentum turning towards neutral.

In conclusion, Litecoin's performance since its April dips has been a great comeback, creating key resistance at $100. If buyers maintain control, the price could reach $105 in the next two weeks. However, if buyers lose control, there is a possibility of a price drop to $85. The overall market cycle continues to be bullish, indicating a positive outlook for Litecoin in the near future.

Ask Aime: "Is Litecoin's recent surge a sign of market defiance or a temporary blip?"