LTC Soars 15%, Will LTC ETF Be Approved This Year?

According to market news, Nasdaq has submitted the Canary Litecoin ETF 19B-4 application, initiating the regulatory review process. Eric Balchunas, a senior ETF analyst at Bloomberg, wrote on social media, ‘The Litecoin ETF has now met all the requirements, and the countdown to the first altcoin ETF in 2025 has begun. I see no reason to withdraw this application, especially since the SEC has commented on the S-1 filing and Litecoin is considered a commodity, and with the SEC having new leadership.’ The approval of the LTC ETF application will be determined in the coming weeks.

Affected by this news, LTC is currently priced at $138.1 on the Gate.io platform, with a 24-hour increase of 15%. As an old-school POW currency, LTC’s performance in this round of the market is actually quite ordinary, but stimulated by the news of the LTC ETF, LTC has risen continuously for the past three days, with an increase of nearly 50% from the lowest point of around $92. LTC’s current circulating market value is $10.5 billion, ranking 19th in the overall market.

According to CoinDesk’s analysis, if the market acceptance of Litecoin ETF is similar to that of Bitcoin ETF, its first-year capital inflow may reach $290 million to $580 million, accounting for about 6% of LTC’s market value ($9.6 billion). This proportion is equivalent to the supply currently locked in Bitcoin ETF.

Canary Capital is actively promoting the LTC ETF, and its submitted 19b-4 document has put SEC into the review process. Analysts believe that LTC’s proof-of-work mechanism, similar to Bitcoin’s, may increase its chances of being viewed as a commodity. Although the fund size of LTC ETF may not be as large as that of Bitcoin or Ethereum ETFs, it is expected to outperform most US ETFs (only 1,330 ETFs manage assets over $300 million). The report points out that market demand is still a key variable, but even with relatively low demand, LTC ETF may still succeed in the cryptocurrency field.

LTC market analysis

Trading data

• Current price: 138.1 USDT
• 24-hour high price: 141.15 USDT
• 24-hour lowest price: 115.94 USDT
• 24-hour rise: 16.13%
• 24-hour Trading Volume: 769,213 LTC
• 24-hour net capital inflow: 32,398,537 USDT

Technical indicators

• Support level: 119.55 USDT
• Resistance level: 141.1 USDT
• RSI Indicator: Overbought state, short-term trend is bearish

Trading strategy recommendations

Strategy 1: Short-term pullback short

• Direction: short
• Entry Price: 140.0 USDT (close to resistance level)
• Stop loss price: 143.0 USDT (above the resistance level)
• Target price: 130.0 USDT (near support level)

Reason: The current LTC is in an overbought state, and the RSI indicator suggests a possible pullback in the short term. The fund inflows are good, but market sentiment may turn due to overbought conditions, making it suitable for shorting at high levels.

Strategy 2: Breakthrough Long

• Direction: Long
• Entry price: 141.2 USDT (after breaking through the resistance level)
• Stop-loss price: 138.0 USDT (below the current price)
• Target Price: 150.0 USDT (Psychological Barrier)

Reason: If LTC breaks through the resistance level of 141.1 USDT, it may trigger further rise. The capital inflow is strong and the market sentiment is bullish, suitable for entering long after the breakthrough.

Outlook

With the advancement of Litecoin ETF, LTC may receive more widespread market attention. If the LTC ETF is successfully approved, it will be an important milestone in the cryptocurrency market and may attract more institutional investor participation. In the short term, LTC may experience a pullback, but if it breaks through the key resistance level, it may usher in a bigger rise.

Investors should pay attention to the market sentiment, capital inflows, and technical changes of LTC, and adjust their investment strategies flexibly. The launch of Litecoin ETF is expected to further enhance the market awareness of LTC and drive its price performance.