Litecoin price rises as the odds of LTC ETF approval increase

Litecoin (LTC) has experienced a notable price surge of nearly 10% on Saturday, marking a three-day upward streak and reaching its highest value since January 18. The rally has been fueled by the increasing likelihood that the U.S. Securities and Exchange Commission (SEC) will approve a spot Litecoin exchange-traded fund (ETF).

The recent boost in LTC’s price follows the filing by CoinShares, a prominent firm managing nearly $10 billion in assets, for a spot Litecoin ETF with the SEC. This filing comes just a few months after Canary made a similar application. These filings have sparked optimism among crypto analysts, as Litecoin’s technical resemblance to Bitcoin, both being proof-of-work cryptocurrencies, makes it a strong candidate for ETF approval. The SEC has not classified Litecoin as an unregistered security, which further bolsters the expectation of approval.

According to a Polymarket poll, there is an 81% probability that the SEC will approve the Litecoin ETF. This follows the agency’s recent request for comments from Canary, which is typically a positive sign in the approval process.

Should the SEC grant approval, it would likely bring fresh institutional capital into Litecoin, potentially boosting its value. However, past trends with Bitcoin and Ethereum ETFs suggest that institutional demand for Litecoin may be modest. Bitcoin’s spot ETFs have already accumulated nearly $40 billion in assets, while Ethereum’s funds sit at just $2.8 billion.

From a technical perspective, Litecoin’s price has been on an upward trajectory, bouncing from the 2022 low of $42.17 to around $130. The coin has broken through the key resistance level of $113.66, which marked its highest swings in April 2023 and July 2023. Litecoin is also maintaining its position above an ascending trendline that has been in place since June 2022, and it is trading above its 50-week moving average. Additionally, Litecoin is forming a small bullish pennant chart pattern, signaling potential further gains.

A breakout above the resistance at $147, its highest point in December, could open the door for more upside, potentially reaching the psychological $200 level. However, this bullish outlook would be invalidated if the price drops below the support at $92.70, which would indicate a reversal in trend.

Overall, Litecoin’s current price action reflects growing optimism surrounding the potential approval of a spot LTC ETF, with technical indicators suggesting that further gains are possible if it can maintain momentum.