Litecoin (LTC) has surged today, reaching a new high for the past two weeks amidst a broader rally in the cryptocurrency market. On March 27, LTC climbed to approximately $99, marking a 9.25% increase over the last 24 hours, while the overall crypto market saw a 1.15% decline during the same period. However, LTC's performance throughout the year thus far has been less impressive compared to the broader crypto market.

The recent uptick in LTC's price can be attributed to several factors. Firstly, there has been absorption of a $60 million supply of LTC by traders, coinciding with the reentry into circulation of over 600,000 LTC tokens on March 5, which had been dormant for at least 5 years. Despite experiencing a significant drop of over 19% on the same day, LTC has since rebounded by 37.25%, indicating the market's ability to absorb the sudden influx of previously inactive tokens.

Additionally, anticipation surrounding the potential launch of Coinbase's cash-settled Litecoin futures contracts in April has further contributed to LTC's price rally. Coinbase Derivatives filed an application with the U.S. Commodity Futures Trading Commission (CFTC) on March 7, targeting a launch date for Litecoin futures contracts starting April 1. Institutional capital inflow to the LTC market following the launch of CME Bitcoin futures in December 2017 could drive LTC's recent gains.

Moreover, Litecoin's network growth, particularly its hash rate reaching a record high of 1.244 Peta-hash per second (PH/s) on March 22, suggests increasing confidence among miners in the profitability of cryptocurrency mining. This uptrend in hash rate, up 40% in 2024, indicates miners' commitment to mining and securing the Litecoin blockchain, potentially fueled by optimism as Bitcoin approaches its fourth halving in April. This confidence encourages traders to hold or purchase LTC, contributing to its price surge.

From a technical analysis standpoint, LTC's rally has gained momentum after surpassing its multi-year descending trendline resistance. Key indicators such as the weekly Relative Strength Index (RSI) and trading volumes suggest strong support for LTC's upward movement, potentially leading to further growth. A bullish scenario could see LTC's price reaching around $127.25 by April, while a pullback might test the descending trendline resistance at $75.50 as support, coinciding with Litecoin's 50-week exponential moving average (50-week EMA).