Litecoin’s price surged on February 10, breaking out of its recent consolidation phase, driven by growing optimism around the potential approval of a spot Litecoin ETF this year.

Litecoin’s Price Rally

LTC rallied over 10% to an intraday high of $114.33 on Monday, marking a 104% increase from its lowest point in 2024. The altcoin’s market cap reached over $8.5 billion, with its daily trading volume doubling to nearly $1 billion.

Key Driver Behind the Price Surge

The primary driver behind LTC’s price surge is the growing anticipation of a spot Litecoin ETF getting approved by the U.S. Securities and Exchange Commission (SEC) by year-end. Polymarket data shows the odds of approval have jumped to 81%, with most traders betting on a launch this year.

Litecoin, being a Bitcoin hard fork, operates on a proof-of-work network just like BTC, which means the SEC considers it a digital commodity. So, there’s really no good reason for the agency to deny a Litecoin ETF.

Strong On-Chain Metrics Support LTC Rally

The current LTC rally is supported by solid fundamentals. Key metrics include:

  • Open interest in the LTC futures market has jumped 10.8% in the past day to $549 million, with a positive weighted funding rate.
  • The total number of LTC holders has been rising over the past week.
  • Large LTC holders, specifically those holding between 10k-100k LTC, have also been increasing over the past 10 days.
  • Weighted social sentiment has improved over the past few days, reflecting traders’ confidence in LTC.

Technical Analysis

On the 1-day LTC/USDT price chart, the MACD line is poised to cross above the signal line, which could signal a bullish reversal. The RSI has climbed to 54, moving above the neutral mark, indicating a shift in momentum in favor of the bulls.

Additionally, the Chaikin Money Flow index with a positive reading suggests strong buying pressure supporting LTC’s current rally, driven by an inflow of new money or capital.

Analyst Predictions

Pseudonymous analyst Carl Moon expects Litecoin to rally in the short term, with a potential target of $128. Fellow analyst Santolita predicts LTC to hit $200 by the end of February.

At press time, LTC was exchanging hands at $117.05 per coin.

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