Litecoin Explodes 11% Towards $130 as ETF Hopes Ignite
Litecoin (LTC) has experienced a significant surge, climbing over 11% to reach $129, outperforming both Bitcoin and Ethereum during a broader market pullback. This impressive rally is fueled by burgeoning excitement surrounding a potential spot Litecoin Exchange Traded Fund (ETF), with trading volume and futures open interest mirroring the bullish sentiment.
Spot ETF Momentum Propels LTC
The primary catalyst for Litecoin's recent price action appears to be increasing confidence in the imminent approval of a U.S.-listed spot Litecoin ETF. Analysts point to Canary Capital's updated S-1 filing, which now includes the LTC ticker and a competitive 0.95% fee, as a "last-mile" detail often seen before such approvals. With other major players like Grayscale and CoinShares also pursuing similar products, Litecoin's established commodity-like profile and long proof-of-work history position it as a favorable candidate for regulatory approval once the SEC resumes normal operations.
Technical Outlook and Key Price Levels
Technically, Litecoin has breached its $127.45 swing high, successfully reclaiming key stacked moving averages (7- and 30-day SMAs), indicating a shift from resistance to support within its multi-month range. The Relative Strength Index (RSI) at 68 suggests strong momentum without being overbought, while the MACD remains firmly positive. Immediate resistance is identified between $130 and $131. A decisive daily close above this level could pave the way for a push towards $134-$135, and potentially extending to $138 and then the $150-$160 zone—a level not seen since early 2022. For long-term bulls, a confirmed breakout from a year-long diagonal pattern could even set an ambitious target of $275 in the coming months, though this hinges on sustained ETF-driven inflows. Momentum traders should closely watch the $125 support level; a decisive loss could trigger profit-taking and pull LTC back to $122-$125, with a deeper retest at $115-$118. However, continued strong holding above $125 and a flip of $130 to support are crucial for bulls to maintain control and drive towards the $135-$138 breakout targets. Broader macroeconomic factors, such as potential government shutdowns and SEC regulatory throughput, along with overall crypto risk appetite, could still introduce volatility.
