Litecoin (LTC) Price Surges Above $90 Despite ETF Delay — $100 Remains Key Level to Reclaim

Key Takeaways

• Litecoin (LTC) is approaching the $100 resistance area.
• The SEC delayed a Litecoin ETF from Canary Capital.
• Can Litecoin rise above the setback and break $100?

LTC has been the biggest gainer in the crypto market over the past 24 hours. The LTC increase resembles Bitcoin’s (BTC), which also surged in the late hours of May 6.

Litecoin’s rally was surprising after negative news about its Exchange-Traded Fund (ETF). More specifically, the Securities and Exchange Commission (SEC) delayed approving an ETF filed by Canary Capital for Litecoin.

This article will examine why Litecoin has risen and where it will head next.

Litecoin Approaches Resistance

The weekly chart shows that Litecoin’s price has increased within an ascending parallel channel since July 2022.

These channels usually contain corrective movements, meaning an eventual breakdown is likely.

The LTC price made three unsuccessful breakout attempts (red icons) before falling to the channel’s support trend line, breaking down from the $100 horizontal area.

After bouncing at support (green icon), Litecoin’s price started a rally and is nearing $100, which coincides with the channel’s midline.

Technical indicators are at critical levels. The Relative Strength Index (RSI) is nearing 50 from below, while the Moving Average Convergence/Divergence (MACD) is approaching 0.

So, whether the price breaks out above $100 has massive repercussions on Litecoin’s future trend.

Why is Litecoin Going Up?

While the crypto market might have reached its cycle high, Litecoin’s long-term wave count is still bullish.

The most likely count suggests the decline since 2018 is part of a long-term symmetrical triangle.

If the count is accurate, the breakout from the triangle will lead to a new, high-time price for LTC.

LTC is currently in wave E, the final one before the breakout. Since wave E often truncates, it is unclear if it has ended or if another low toward $70 will transpire.

The short-term wave count suggests a local top is near. According to it, LTC has completed a long-term five-wave decline (red), a sign that the correction is over.

It confirmed this with a breakout from a descending resistance trend line that accelerated the rally.

However, LTC has also finished a short-term five-wave increase (black), indicating that a local top is in place.

Therefore, the most likely future outlook predicts an initial Litecoin decline before the price can increase.

Exciting Trend Ahead

The LTC price has bounced admirably since its April lows and is nearing a key resistance at $100.

Whether it breaks out can help determine the direction of future trends.

Litecoin’s long-term wave count is interesting since it allows for a new all-time high this cycle.