Quick Takes
- “Digital silver” Litecoin (LTC) has seen its price surge 15% over the past two days following the reports that the SEC is monitoring the possibility of approving a spot Litecoin ETF for trade on U.S. stock exchanges.
- The federal securities regulator is reviewing an application from investment manager Canary Capital for its Canary Litecoin ETF. Bloomberg analyst Eric Balchunas suggests it could be the first crypto ETF to be launched this year.
- Investor sentiment is strong for LTC, with the cryptocurrency hitting an overbought position on the RSI. Litecoin’s price could target a two-year high of $158 if Canary’s ETF is greenlit, however, a decline to $99 can be expected if the SEC delays its decision.
Litecoin (LTC), the cryptocurrency often referred to as the digital silver to Bitcoin’s digital gold, is making a remarkable comeback following its crash early last week. The price of LTC has soared by 15% over the previous 24 hours, hitting a daily high of $131.67 before settling lower in a range between $126 and $129.
The rally is tied to some major bullish developments in the market, specifically, the U.S. Securities and Exchange Commission (SEC) acknowledging Litecoin spot ETF filings and the Federal Reserve deciding to halt interest rate cuts, increasing investors’ enthusiasm for leading crypto assets, especially LTC.
Let’s take a look at the factors driving the Litecoin rally and how it will be sustained.
Litecoin Spot ETF Expected To Be The First Crypto ETF Approved In 2025
The main catalyst for the LTC price rally is the SEC accepting the 19b-4 filing from digital asset investment firm Canary Capital for its proposed Canary Litecoin ETF. The 19b-4 application is a crucial step because it involves the regulator closely monitoring the market impacts of the fund and ensuring that it has established consumer protection standards before approval.
The SEC has now opened the door for public comments on the spot Litecoin ETF, and market participants have 21 days to provide feedback, with a deadline set for February 29. Investors and industry experts are eagerly following this development as they anticipate similar results to those of the spot Bitcoin ETFs, which triggered a long-running bullish sentiment for BTC. The potential approval could have far-reaching implications for the future of LTC.
Bloomberg’s senior ETF analyst Eric Balchunas highlighted that the Canary Litecoin ETF could be the first crypto-focused investment product to hit the market this year. He further noted that the filing has checked all the necessary boxes and is currently the furthest along compared to crypto ETF filings from other issuers.
Balchunas also claimed there is no reason for the application to be withdrawn given the SEC provided positive feedback on Canary’s initial S-1 filing, views Litecoin as a commodity, and the leadership at the agency is now pro-crypto.
Federal Reserve Halts Interest Rate Cuts, Triggering Crypto Price Rally
Crypto investors are largely bullish on the market’s prospects following the Federal Open Market Committee (FOMC) deciding to hold interest rates steady this year, which has had a positive effect on crypto prices.
There was speculation that the Fed’s announcement could create extreme volatility but in turn, the unchanged rates have boosted investment sentiment by pushing the prices of crypto assets much higher. After Wednesday’s FOMC meeting, Bitcoin (BTC) rallied to $106,000. This also triggered parallel gains for other altcoins, including LTC, which surged by 15% to $125.90.
Key Price Points For Litecoin (LTC)
Following its latest surge, Litecoin is currently trading at $128.90 and has a market capitalization of $9.72 billion. The altcoin’s trading volume surged by 70% since Wednesday to $1.41 billion, indicating strong investor interest on the back of the positive ETF development.
The LTC chart is now forming a rounder bottom pattern, often viewed as a bullish signal indicating the possibility of a positive trend reversal. As per the chart, the key support levels for Litecoin are now between $99.36 and $109.06, while the key resistance levels fall between $135.94 and $162.12.
A successful uptrend could propel LTC price to a two-year high of $158.92, at the minimum. However, a drop below its support could trigger a further decline to $99.36.
Crypto analyst “Trade Pro” highlighted that a three-wave correction pattern was forming on the Litecoin price chart, typically observed for cryptocurrencies that could soon experience a strong uptrend. He forecasts LTC to continue its upward trajectory, surging to $170 or even $295 in the coming weeks.
Moreover, the relative strength index (RSI) stands at 59.29, indicating that Litecoin is fast approaching the overbought zone but still has room to move further upside. This means that if LTC can maintain a support level above $120, then it could test the resistance levels around the $130 and $135 range in the short term, but if the price fails to break through the resistance, then the market could expect a pullback to the $116 zone.
Final Thoughts
The future looks bright for Litecoin, with the price surge reflecting investors’ positive outlook for the digital silver. The potential approval of the spot Litecoin ETF could result in large hoards of retail and institutional investors considering adding LTC to their portfolios, further extending its gains.
Analysts are bullish on LTC’s long-term prospects, with many expecting it to hit new heights this year and even surpass the all-time high (ATH) of $412.96 from May 2021. Litecoin is viewed by many as one of the best cryptocurrency investments of 2025.
The next few weeks could be pivotal for Litecoin’s price, driven by the ongoing review process for the Canary Litecoin ETF filing. If the SEC delivers positive comments on the application, then the exchange-traded product (ETP) could be launched on Nasdaq by June, pushing prices to record highs. On the contrary, any delay in the decision could result in prices dropping to the lower support of $99.36, which could be bearish for the LTC market.
Note that this is not financial advice, and it is highly recommended that you conduct proper research before making an investment decision regarding Litecoin.
