Why Litecoin Price Could Surge by 75%

Litecoin’s price is currently hovering near a crucial resistance level, and both fundamental and technical factors suggest it could soar by 75% this year. Recently, Litecoin reached a high of $128.37, marking a 60% increase from its lowest point this year.

The primary factor driving Litecoin’s potential surge is the increasing likelihood of the U.S. Securities and Exchange Commission (SEC) approving a spot Litecoin exchange-traded fund (ETF). Companies like Canary Capital, Grayscale, and CoinShares have already filed applications for a spot Litecoin fund. According to Polymarket, the probability of SEC approval has risen to 85%, signaling strong market confidence in the listing. A poll also suggests a 52% chance that approval could come by July 31.

The SEC tends to view Litecoin and other proof-of-work coins, such as Dogecoin, as digital commodities, which enhances their chances of receiving regulatory approval compared to proof-of-stake tokens. This approval would likely have a positive effect on Litecoin’s price.

Moreover, demand in the futures market for Litecoin has surged, with open interest in Litecoin futures climbing to $870 million—more than doubling from a low of $420 million earlier this month. This indicates increased investor positioning and speculation, further fueling bullish sentiment.

From a technical standpoint, Litecoin has recently broken above the 50-week Exponential Moving Average and surpassed a key resistance level at $114.05, which formed the upper boundary of an ascending triangle—an indicator of potential upward momentum. Additionally, Litecoin has formed a slanted triple-bottom pattern, a sign of strength in the market. It is also entering the second phase of the Elliott Wave pattern, which historically leads to strong price movements.

Given these technical indicators, Litecoin’s next target is the $225 mark, which corresponds to the 50% Fibonacci retracement level and represents a 75% upside from its current price. However, this bullish outlook could be invalidated if the price drops below the support level at $80.