over the past 24 hours, with most major digital assets showing minor losses or
consolidation. However, Litecoin (LTC) stood out with a strong rally,
gaining more than 10% and emerging as the best performer among the top 100
cryptocurrencies.
According to data from CoinMarketCap, the crypto asset
traded at $118 at the time of publication, representing an 11% and 22% increase
in the past day and week, respectively. LTC also has nearly $9 billion in
market capitalization.
Despite all the indicators pointing to a bullish momentum, it remains to be seen whether this rally is the beginning of a bullish trend or if a price pullback is imminent.
Optimism Around a Litecoin ETF
One key driver behind Litecoin's price jump
could be the increasing anticipation that the US Securities and Exchange
Commission (SEC) may soon approve a spot Litecoin ETF.
The agency recently acknowledged Canary Fund's
proposal for such a product, fueling investor optimism. The crypto market is
now optimistic that a Litecoin ETF will be approved before the end of 2025. Several market analysts believe Litecoin's price surge
could be the start of a larger uptrend.
This development followed Nasdaq's recent filing of
19b-4 forms with the SEC to list CoinShares' XRP and Litecoin ETFs. If
approved, these ETFs could provide institutional investors with new ways to
gain exposure to Litecoin, potentially boosting liquidity and demand for the
asset.
Technical Indicators Signal Possible Pullback
Despite the growing bullish sentiment, LTC could
experience a price pullback before any further gains. Litecoin's Relative Strength Index (RSI), a key technical indicator that measures the speed and
change of price movements, is currently at 54. Although this is not considered
overbought, the indicator has been on a sustained rise since February 4.
An RSI reading above 70 typically indicates that an
asset is overvalued and may experience a short-term correction. This suggests
that while Litecoin's price may continue to rise, the price could face
potential volatility and pullbacks.
The coming weeks will be crucial for Litecoin's price trajectory. If ETF optimism continues to build and market conditions remain
favorable, LTC could test higher resistance levels. The immediate price
resistance level is 123, and beyond this level, the price could be $130,
which was last achieved on January 31.
However, if overbought conditions trigger a
correction, investors may look for support around $115 or lower at $98 before
another potential rally. With increasing institutional interest and speculation
around an ETF, Litecoin remains a cryptocurrency to watch closely.
This article was written by Jared Kirui at www.financemagnates.com.
http://dlvr.it/THv50T
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