LTC/USD closed at 243.30 after placing a high of 243.85 and a low of 212.54. On Tuesday, LTC/USD rose for the eighth consecutive session and reached its highest level since February 2018 at $243. Most of the cryptocurrency prices are soaring lately due to the increased hype of digital coins in the market. The entire market capitalization reached $2 trillion for the first time, thanks to the ETHEREUM rally. The burst of interest in so-called decentralized finance (Defi) and the non-fungible tokens (NFTs) caused many retailers and institutions to invest in the crypto market.
Litecoin also followed the crypto market trend and reached its highest level in three years on Tuesday. Furthermore, the recent surge in LTC prices could also be attributed to the latest news from CoinShares that announced the launch of Litecoin backed exchange-traded product (ETF). On April 6th, CoinShare revealed the Litecoin exchange product’s launch and said that it would be listed using the ticker LITE. According to the report, at the launch, each LITE unit was backed by 0.2 Litecoin, and it will offer institutional investors access to Litecoin.
CoinShare is among the largest digital asset investment houses in Europe, and a recent announcement brought the total number of investment products by the company to seven. This report helped Litecoin, and its prices suddenly increased by more than 10% in a single day on Tuesday. On the other hand, the recent popularity of cryptocurrencies increased investors’ interest in BITCOIN, which eventually raised the world’s largest cryptocurrency prices. The rising prices of Bitcoin also pushed the Litecoin prices as it tends to impact other currencies due to its huge market cap directly.
On the USD front, at 18:37 GMT, the IBD/TIPP Economic Optimism from the US remained flat with the expectations of 56.4. At 19:00 GMT, the JOLTS Job Openings for February surged to 7.37M against the predicted 6.91M and supported the US dollar. The US Dollar Index fell to a near 2-week lowest level on Tuesday at 92.32 and supported LTC/USD prices.
The LTC/USD pair trades with a bearish bias at 226.25 level as the pair entered the overbought zone. For now, Litecoin is likely to drop until the 218 level that marks 50% Fibonacci retracement. On the lower side, violation of 218 level can extend selling trend until 211 level. The RSI and MACD are still holding in a buying trend, while the 20 and 50 periods EMA support a selling bias. Let’s consider taking a sell trades below 231 level today. Good luck!