Litecoin Approaches Crucial Level as LTC ETF Chances Surge

Litecoin (LTC) is currently experiencing a significant price surge, driven by growing expectations that the U.S. Securities and Exchange Commission (SEC) may approve a spot ETF (Exchange-Traded Fund) for Litecoin in 2025. Litecoin has risen to $136, a few points shy of the crucial resistance level at $146, its highest point in 2024, marking a 28% increase over the past week. This surge has made Litecoin one of the top-performing cryptocurrencies in the top-100, behind only PancakeSwap.

The main driver behind Litecoin’s rise is the increasing probability of a Litecoin spot ETF being approved by the SEC. According to Polymarket data, the odds of an approval have soared from a low of 42% earlier in the year to 88%, reflecting the growing confidence that the SEC will approve the ETF in 2025. This would be a significant milestone for Litecoin, as the SEC has already approved spot Bitcoin ETFs, and Litecoin, being a proof-of-work cryptocurrency with similarities to Bitcoin, may benefit from similar regulatory treatment.

The approval of a Litecoin spot ETF could open the door for companies like Grayscale, Canary, and Coinshares, which have already filed for a Litecoin ETF. The rise in odds for approval is partly due to Litecoin’s similarity to Bitcoin in terms of its proof-of-work structure, and its larger maximum supply (84 million coins compared to Bitcoin’s 21 million). The approval of Bitcoin ETFs has been highly successful, with Bitcoin ETFs attracting significant inflows, which strengthens the case for Litecoin’s potential ETF approval.

However, despite the positive momentum, there are challenges that Litecoin and other altcoin ETFs face. The main hurdle is that Litecoin ETFs may struggle to attract substantial inflows from Wall Street investors, as seen with Ethereum ETFs, which have only attracted around $3.1 billion in inflows since their approval in 2024.

From a technical perspective, Litecoin is approaching a critical point in its price action. The weekly chart shows that the LTC price has remained within a tight range since 2022, but it recently broke above a key resistance level at $113.38, signaling a potential bullish move. Litecoin is also attempting to break through the 23.6% Fibonacci retracement level at $130, and if it surpasses the resistance at $146, it could see further gains. A successful surge above $146 could push the price toward the 38.2% Fibonacci retracement level at $185, which would represent a 36% increase from current levels.

In summary, the outlook for Litecoin appears bullish, particularly if the SEC approves a spot ETF. With strong technical indicators and the growing likelihood of ETF approval, Litecoin’s price could continue to rise, potentially reaching new highs in the coming months.