Leading cryptocurrencies, including Litecoin, experienced significant growth following the latest US Federal Reserve meeting.
Current State of the Crypto Market
The past 24 hours saw a noticeable revival in the cryptocurrency sector, with its global market cap surpassing $3.7 trillion. This change came shortly after the US Federal Reserve decided to keep interest rates unchanged at 4.25% – 4.50%. Initially, this decision triggered a market decline. Chairman Jerome Powell stated that the central bank is not against technologies involving cryptocurrencies, and local banks are perfectly able to serve crypto customers if they understand and manage the risks. Assets like Bitcoin, Solana, Cardano, and Chainlink have shown significant gains post the conference.
Factors Behind Litecoin's Rise
Among the top 20 digital assets, Litecoin stood out with a notable increase of 14% over 24 hours. Currently, it trades at around $130, the highest level observed since mid-January. The key factor behind this rise is the US SEC's acknowledgment of Canary Fund's intention to launch a spot Litecoin ETF. This regulatory review process can take up to 240 days and has the potential to positively impact prices long-term. Analysts are optimistic about further gains for Litecoin during this bullish cycle.
Expectations and Risks
Despite the general optimism, Litecoin's Relative Strength Index (RSI) signals a potential correction. This technical analysis tool measures the speed and change of price movements, warning of possible overbuying. The current reading is close to the threshold indicating a possible pullback.
Litecoin shows impressive growth connected with ETF acknowledgment and general market optimism. However, traders should consider technical signals indicating a potential correction.
