🌎 Litecoin Price May Surge 75% This Year

Likely Approval of LTC ETF Could Spark 75% Surge in Litecoin Price This Year

Litecoin Price Analysis: Bullish Indicators and Fundamentals

Litecoin’s price is hovering near a crucial resistance level, driven by both fundamentals and technical indicators suggesting a potential surge of over 75% this year. The cryptocurrency’s price rose to a high of $128.37 on Thursday, representing a 60% increase from its lowest level this year.

Increasing Likelihood of LTC ETF Approval

The primary catalyst for Litecoin’s growth is the increasing likelihood that the Securities and Exchange Commission (SEC) will approve a spot Litecoin exchange-traded fund (ETF) later this year. Companies such as Canary Capital, Grayscale, and CoinShares have filed applications for a spot Litecoin fund. According to Polymarket, the probability of the SEC approving a spot Litecoin ETF has climbed to 85%, indicating strong market confidence in a listing.

Another poll assigns a 52% probability that the agency will approve the fund by July 31. The odds of proof-of-work coins such as Litecoin and Dogecoin receiving regulatory approval are significantly higher than those for proof-of-stake tokens. The SEC views Litecoin and Dogecoin as digital commodities, while it categorizes other tokens as securities.

Surging Demand in the Futures Market

Litecoin’s price has also increased as demand in the futures market has surged. Open interest in Litecoin futures climbed to $870 million on Wednesday, up from this month’s low of $420 million. Rising futures interest signals growing investor positioning and speculation.

Technical Analysis: Bullish Indicators

The weekly chart shows that Litecoin’s price has rebounded in recent weeks. It has moved above the 50-week Exponential Moving Average and surpassed the key resistance level at $114.05. This level was significant as it formed the upper boundary of an ascending triangle, a pattern widely considered bullish in technical analysis.

Additionally, Litecoin has formed a slanted triple-bottom pattern, another bullish indicator. The token is also in the process of forming the second phase of the Elliott Wave pattern, where the third phase is typically the strongest and longest.

Given these factors, Litecoin’s price could continue rising, with the next target at $225, the 50% Fibonacci retracement level, representing a 75% upside from the current price. However, this bullish outlook would be invalidated if Litecoin’s price falls below the support level at $80.

Tips for Investors

Monitor the SEC’s decision on the LTC ETF application, as approval could drive up the price.
Keep an eye on the futures market, as increasing demand could signal growing investor interest.
Watch for technical indicators, such as the 50-week Exponential Moving Average and the Fibonacci retracement level, to gauge the price’s potential movement.