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Litecoin (LTC) Crosses $70 as Spot ETF Filing Sparks Investor Interest

Published
Valdrin Tahiri
Published
By Valdrin Tahiri
Edited by Ryan James

Key Takeaways

  • Canary Capital filed for a Litecoin (LTC) ETF on Oct. 16.
  • The Litecoin price attempts to reclaim a lost support level.
  • Can LTC move above this area and increase toward $100?

The Litecoin price has struggled in 2024. The year started positively, but LTC has fallen since April, breaking from a long-term support trend line.

However, a bounce has been ongoing since Aug. 5. When combined with the positive Litecoin news regarding the filing of a spot Litecoin ETF, it may finally trigger a price rally.

Let’s analyze the price action and see how likely this is.

Canary Capital Litecoin ETF

On Oct. 16, Asset manager Canary Capital filed for the first-ever spot Litecoin ETF in the United States. It can provide customers and institutional investors with direct exposure to LTC if approved.

According to the fillings , the ETF will closely track the CoinDesk Litecoin Price Index. Canary Capital has previously filed for an XRP ETF.

The Securities and Exchange Commission (SEC) has a maximum of 240 days to respond to the filing. This means an approval decision has to be made until June 2025.

Currently, the Grayscale Litecoin Trust  exists for investors who want to gain ownership without directly purchasing and holding LTC.

Three days earlier, on Oct. 13, Litecoin celebrated its 13th anniversary.  Litecoin usage is at an all-time high, with 77 million transactions year to date , an increase over the previous record of 67 million for all of 2023.

Litecoin Attempts Reclaim

The weekly time frame Litecoin analysis shows that the price broke down from an ascending support trend line in May. This was a sign that the Litecoin trend was turning bearish.

However, after falling to a low of $49.80 in August, the price bounced, created a long lower wick (white icon), and reclaimed the $58 horizontal support area.

Today, the Litecoin price attempts to move above the trend line and reclaim it as support. So far, the first attempt has been unsuccessful (black icon).

Litecoin Trendline
LTC/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView 

Technical indicators are at critical levels. The Relative Strength Index (RSI) has reached the 50 trend line from below, while the Moving Average Convergence/Divergence (MACD) has made a bullish cross (black circle) but is below 0.

If the LTC price reclaims the trend line, it will likely cause the indicators to move above their bullish thresholds and confirm the bullish trend reversal.

LTC Price Rally?

While the price action and indicator readings lean bearish, the wave count is bullish. The most likely count indicates that the LTC price has completed a five-wave increase and an A-B-C correction since May 2022.

If this is the case, Litecoin will soon begin another upward movement. It is unclear if this will be part of a long-term wave three or wave C in another A-B-C structure.

Litecoin Wave Count
LTC/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView 

In any case, an upward movement with at least the same length as the previous one is likely. If this happens, the LTC price can increase by 100% and reach $140. The reaction once it gets there can help determine whether the long-term trend is bullish or bearish.

Conversely, failure to reclaim the trend line can trigger a downward movement toward $48. Currently, this seems less likely.

Critical Resistance Ahead

After breaking down from an ascending support trend line, the LTC price attempts to reclaim it. While indicator readings are undetermined, the wave count suggests that LTC will successfully reclaim it and increase toward the next target at $140.

Read more: Litecoin Price Prediction 2024: LTC Price Analysis
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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