Litecoin (LTC) has defied the broader crypto market trend, soaring over 9% in the last 24 hours to hit $127.85 on February 27. This rally comes amid a 3% decline in total market capitalization, driven by macroeconomic concerns such as underwhelming Nvidia earnings and new tariff announcements from former U.S. President Donald Trump.
Key Drivers Behind Litecoin’s Rally
1. Litecoin’s Official Domain Extension “.ltc”
One of the primary catalysts behind Litecoin’s price surge is the recent announcement of its own domain extension, “.ltc.” Unveiled on February 25 in collaboration with Unstoppable Domains, this initiative mirrors Ethereum’s .eth domains, which have become integral to Web3 identity solutions.
The .ltc domain aims to simplify transactions by replacing lengthy alphanumeric wallet addresses with personalized blockchain-based addresses, reducing the risk of errors and making LTC payments more user-friendly. Since the announcement, LTC has gained approximately 22%, highlighting strong investor enthusiasm.
2. Litecoin’s Strength Against Bitcoin
Litecoin has also been performing exceptionally well against Bitcoin (BTC). The LTC/BTC pair has climbed around 40% year-to-date, showcasing a resilience that Ethereum (ETH) and Solana (SOL) have failed to match, with declines of 24.45% and 20.50% against BTC, respectively.
The growing speculation around a Litecoin exchange-traded fund (ETF) has fueled its dominance. Bloomberg analyst Eric Balchunas estimates a 90% chance of a Litecoin ETF approval in 2025, while betting platform Polymarket places the odds at 75% as of February 27.
3. Litecoin’s Hashrate Hits All-Time High
On-chain data also reveals strengthening network fundamentals. Litecoin’s hashrate has reached a record 2.25 PH/s, signaling enhanced security and miner confidence. Additionally, miner reserves are increasing, reducing selling pressure and creating a potential supply squeeze, further supporting LTC’s bullish momentum.
What’s Next for Litecoin?
Litecoin’s price action follows an inverse head and shoulders (IH&S) pattern, a classic bullish reversal indicator. If LTC successfully breaks above the $130 neckline, its next major target is $160 in the short term, with a longer-term outlook potentially reaching $360. However, failure to hold above $130 could lead to a correction toward support levels at $123.80 and $120.41.
Also Read: Litecoin Whales Scoop Up $130M – Is a Massive Breakout to $300 on the Horizon?
As Litecoin continues to gain traction, both technical and fundamental indicators suggest further upside potential, making it a standout performer in a volatile market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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