Litecoin price went vertical as it jumped for three consecutive days, reaching its highest level in almost a month.
The price of Litecoin (LTC) rose to $126, up 26% from its lowest level this week. It was the second-best performing coin after XDC Network (XDC).
Litecoin’s surge is primarily attributed to rising hopes that the Securities and Exchange Commission will approve a spot LTC ETF by Canary Capital.
In an X post, Eric Balchunas, a Senior ETF Analyst at Bloomberg, stated that the SEC had sent comments to Canary. These comments suggest that the agency may ultimately approve the fund.
Litecoin, a Bitcoin fork, has a higher chance of approval compared to other projects like Hedera Hashgraph (HBAR) and Solana. Both HBAR and Solana are proof-of-stake networks with staking features, which the SEC often considers unregistered securities.
A Polymarket poll with nearly $10,000 in assets indicated that the odds of a spot LTC ETF approval rose to 60%, up from this week’s low of 40%.
Analysts remain optimistic that the SEC, under Paul Atkins, will adopt a more favorable stance toward crypto ETF approvals compared to Gary Gensler’s tenure.
However, it remains unclear whether a Litecoin ETF would attract significant capital from institutional investors. Data shows that institutional investors overwhelmingly prefer Bitcoin, which boasts over $120 billion in assets, compared to Ethereum’s $12 billion.
Litecoin price analysis
The daily chart shows that the LTC price has gone parabolic over the past few days. This rebound occurred after the coin formed a double-bottom pattern around $96. It has now surged above the neckline of this pattern at $117.17, its highest level on Jan. 6.
Litecoin is also supported by the 100-day moving average, while the Relative Strength Index (RSI) and the MACD indicators are both pointing upward. Therefore, the coin is likely to continue rising as bulls target the next key level at $146, which was its highest point on Dec. 5. This target represents an 18% increase from the current price.
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