Litecoin Falls 6%: What’s Next?

• The US SEC’s lawsuit against Binance has caused a sharp correction in the market, with LTC dropping 6% in the past 24 hours.
• Although the US SEC hasn’t classified LTC as a security, long positions are discouraged due to its increased regulatory pressure.
• If BTC reclaims $26k, LTC could reverse May gains and test $95 resistance; however, next week’s Fed rate hike could make a strong rebound elusive for bulls.

Impact of Binance Lawsuit on Litecoin

The US SEC’s lawsuit against Binance for securities laws violations has had an impact on Litecoin (LTC), which dropped 6% over the past 24 hours and is currently trading at $87.5. A CFTC filing in March categorized Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], and Binance USD [BUSD] as commodities, but not as securities.

Discouraging Long Positions

As such, long positions are being discouraged due to increased regulatory pressure. This is highlighted by the 4-hour chart showing that over $80k worth of long positions were liquidated compared to only about $20k worth of short positions being liquidated.

Reclaiming $26K Resistance

In order for LTC bulls to have any hope of making a recovery, BTC must first reclaim its resistance level at $26K. If this happens, then there is a possibility that Litecoin will be able to reverse its losses from May and break through the resistance level of $95. However, if next week’s Fed rate hike occurs then it may make it difficult for bulls to make any significant progress in terms of recovering their losses or pushing further up in price.

Profit Calculator & Accumulation Trend

The Accumulation/Distribution indicator has been steadily increasing since late May, indicating an accumulation trend which could help support an upward move should BTC break back above its resistance level and provide some bullish momentum for Litecoin as well. Interested traders can use a profit calculator to determine how much 1, 10 or 100 LTC is worth today and plan their investments accordingly.

Conclusion

Overall, although there have been some positive developments in terms of regulations surrounding Litecoin when compared to other cryptocurrencies like MATIC or SOL which have been labeled as securities by the US SEC recently; it has still not been completely free from regulatory pressure which could continue to put downward pressure on prices until further clarity is obtained from the authorities involved.. Therefore traders need to remain vigilant when investing in this asset class and be sure to conduct their own research before making any decisions regarding their portfolios