Litecoin’s Price Surges Amid Expectations of Spot ETF Approval

Litecoin’s price saw a significant surge on January 30, with a more than 12% increase, reaching an intraday high of $135. This substantial growth has brought the cryptocurrency’s value up 165% from its lowest point in 2024.

Expectations of SEC Approval Rise

Polymarket odds of a spot Litecoin ETF approval have risen to 86%, signaling that most participants expect the approval to happen later this year. This increased confidence comes after the Securities and Exchange Commission (SEC) acknowledged Canary’s Litecoin ETF application and opened it for public comment.

Litecoin’s similarity to Bitcoin is a key factor in the expected approval. As a Bitcoin hard fork, Litecoin has a maximum supply of 84 million coins, while Bitcoin is capped at 21 million. This similarity is seen as a positive factor in the SEC’s consideration of the ETF application.

Potential Impact on Litecoin’s Price

Litecoin’s price is likely to rise ahead of the ETF approval as traders anticipate increased institutional demand. However, there is a risk that Litecoin’s ETF will see limited interest from institutional investors, who remain primarily focused on spot Bitcoin ETFs.

According to recent data, spot Bitcoin ETFs have accumulated nearly $92 billion in inflows, bringing total assets under management to $121 billion. In contrast, Ethereum ETFs have seen cumulative inflows of $2.66 billion and now hold $11.8 billion in assets. This trend suggests that institutional investors are primarily interested in Bitcoin funds, which could limit demand for Litecoin’s ETF.

Litecoin Price Analysis

The weekly chart shows that Litecoin’s price has been consolidating over the past few weeks, remaining slightly above the key support level at $115.15. This price level aligns with the upper boundary of the ascending triangle pattern and the 23.6% Fibonacci retracement level.

Litecoin has entered the second phase of the Elliott Wave formation, with the upcoming third wave potentially pushing the price toward the 61.8% retracement level at $271.45, representing a potential 100% gain from current levels. However, the bullish outlook will be invalidated if Litecoin’s price drops below the psychological support level of $100.

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