Litecoin, a cryptocurrency created based on Bitcoin
protocol, has posted a strong performance in the past day and week
respectively. The surging gains was potentially boosted by excitement over an
exchange-traded fund (ETF) approval. At the time of publication, LTC traded at 120.56, up
18% and 16%, in the past day and week, respectively according to the data from
CoinMarketCap.
Canary Capital’s amended filing for its Litecoin ETF
has reignited speculation that LTC could be the next cryptocurrency to gain
regulatory approval in the United States, according to an SEC filing yesterday
(Wednesday).
The speculation has sparked significant buying
activity from both institutional and retail investors. In the past 24 hours
alone, LTC’s trading volumes have soared more than 250% to $1.83 billion.
ETF Filing Fuels Market Optimism
Canary Capital recently submitted an amended S-1 form
for its proposed Litecoin ETF, a move the market perceives could be a critical
step toward regulatory approval. This filing followed a broader trend of increased
interest in cryptocurrency ETFs, with Litecoin now positioned as a serious
contender.
Past approvals of similar products, such as Bitcoin
ETFs, have triggered significant market rallies, and investors are banking on
Litecoin repeating that success. Besides that, on-chain data from Santiment indicates
that large investors, commonly referred to as whales and sharks, have been
actively accumulating Litecoin, the analytics firm posted on X.
⚡️📈 Litecoin has decoupled from other altcoins, jumping +16.1% in market cap in just the past 11 hours. Just as we saw in early December, the key driver appears to be whales and sharks holding at least 10K+ $LTC. They have accumulated 250K coins since Jan. 9th. 👀 pic.twitter.com/zCmu7tGKJl
— Santiment (@santimentfeed) January 15, 2025
Wallets holding at least 10,000 LTC have added 250,000
coins to their holdings since Jan 9, highlighting heightened confidence among
influential market players.
Bullish Technical Signals
From a technical analysis standpoint, Litecoin’s
recent price action points to further gains. The cryptocurrency has bounced off
the $98 price support level, the third time it has done so since December 20.
Beyond this level, the nearest price resistance level
is $125, while the next level is $135, last reached on December 24. Other technical indicators also point to further upward momentum.
The price is currently above the 50 and 200 moving
averages. The Relative Strength Index (RSI) is also at 62, meaning the price is
below the overbought zone, and the price can still go upwards before any trend
reversal can be seen.
The anticipation of a Litecoin ETF has broader
implications. An approved ETF would make Litecoin more accessible to
institutional investors, potentially increasing demand and stabilizing its
market position. A similar trend was seen with the approval of Bitcoin
ETFs, which remains one of the factors that has boosted the price.
This article was written by Jared Kirui at www.financemagnates.com.
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