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Litecoin (LTC) has rallied by 5.15% to $122, driven by growing optimism surrounding a potential spot ETF approval that is now seen as having a 90% likelihood.
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Amidst a challenging backdrop for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), LTC’s surge indicates a robust bullish sentiment in the market.
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As noted in a recent analysis, “The bulls could push the price breakout, rallying toward the $150-$170 key zone in the short term,” highlighting the expected bullish trajectory for LTC.
Litecoin’s price surged by 5.15% to $122 amid speculation of a 90% approval chance for its spot ETF, as market indicators favor bullish momentum.
LTC’s Technical Setup and Potential Scenarios Unfold
Analyzing Litecoin’s price on the 8-hour chart reveals a consolidation phase forming a bullish pennant, which typically suggests a potential upward rally. As LTC has been testing the upper key horizontal resistance zone, traders watch closely for a breakout above the $130-$135 barrier.
According to insights from World of Charts shared on platform X (formerly Twitter), a successful breakout could push the price towards a target of $150-$170 in the near term, with long-term aspirations set at $250.
Source: X
Conversely, a rejection within this formation could lead to a price pullback, potentially retesting the support levels around $110-$100, should a breakout fail.
On-Chain Metrics Flash Mixed Signals for Investors
Recent data indicates that LTC’s 24-hour Open Interest (OI) has increased by 4.8%, although trading volume has decreased by 24.61% according to Coinglass. This discrepancy may suggest caution among traders despite the price rally.
Intotheblock data reveals that whales hold a significant 48% of total LTC, indicating a strong accumulation phase among large investors. Furthermore, 84% of all holders are currently in profit, reinforcing a bullish sentiment.
According to Santiment, there has been a notable rise in investor enthusiasm, with LTC’s social volume increasing from 100 to 128 in just one week, indicating heightened interest.
Source: Santiment
At the time of writing, LTC’s Long-to-Short Ratio stands robustly above 1.5 across all timeframes as reported by Coinalyze.
Source: Coinalyze
What Comes Next for Litecoin Investors?
The observed drop in trading volume over the past 24 hours indicates a potential hesitation among traders, suggesting that long-term investors might be awaiting more favorable conditions before entering or exiting positions.
Given that most HODLers are currently in profit, aggressive selling seems less probable, which could stabilize LTC’s price in the near term.
In the coming weeks, the movements of on-chain metrics, combined with technical developments and any updates regarding the spot ETF, will likely be decisive in determining Litecoin’s next significant price movements.
