Litecoin ETF Uncertainty Weighs on LTC Price
Key Takeaways
The U.S. Securities and Exchange Commission (SEC) is expected to make a decision soon regarding Canary Capital’s application for a Litecoin ETF (Exchange Traded Fund). A delay is considered likely. This uncertainty is directly impacting the price movement of Litecoin (LTC). Currently, the market lacks clear upward momentum. Technical indicators suggest limited price potential. Traders should prepare for sideways movement.
Litecoin ETF: Decision Pending
Canary Capital has submitted an application for a Litecoin ETF. An ETF allows investors to gain exposure to Litecoin without directly purchasing the cryptocurrency. Analyst James Seyffart believes the SEC may postpone the decision on May 6. Approval could provide short-term support for Litecoin’s price. A delay, however, would likely reinforce the existing resistance around $90 USD.
Chart Analysis: Resistance at $89 USD
The daily chart (1D) shows a bearish structure. Although the price recovered from $63 USD in April, the recent high of $96.50 USD was not surpassed. This means the downtrend remains intact. The area around $89.30 USD corresponds to the 78.6% Fibonacci retracement level. The price has recently failed multiple times at this level. The current sideways range lies between $83.30 and $88.80 USD.
Indicators: Weak Demand Despite Momentum
The Awesome Oscillator indicates short-term upward momentum. However, the Accumulation/Distribution (A/D) indicator shows that buying pressure has been weak in recent weeks. This discrepancy argues against a sustained breakout to the upside. Demand remains low, increasing the risk of a pullback.
Liquidation Zones: Price Targets Between $80 and $91 USD
The Coinglass Liquidation Heatmap identifies two key price zones: $80.30 and $91.40 USD. These areas could attract price action in the short term. The $91.40 USD zone is closer to the current price and thus a more realistic short-term target. At the same time, Bitcoin continues to exert a strong influence on Litecoin. A pullback in BTC could also pressure LTC.
Outlook: Sideways Phase Likely
As long as no decision is made regarding the ETF, Litecoin is likely to trade within a narrow range. The combination of weak demand, technical resistance, and lack of regulatory clarity argues against a strong price movement. Traders should expect short-term fluctuations between $80 and $91 USD.
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Our Assessment
Uncertainty surrounding the Litecoin ETF is weighing on the market. While approval could provide a short-term boost, it currently seems unlikely. Technically, the coin remains in a consolidation phase. For traders, this means exercising patience and waiting for clear signals. Those already invested should monitor resistance levels closely. New entries should be approached with caution until the market outlook improves.
| Symbol | LTC |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $82.08 |
| 24h % | -7.57 % |
| 7d % | -5.02 % |
| 30d % | 0.36 % |
| 60d % | -20.14 % |
| 1y % | -1.67 % |
| Market Cap | $6,226,880,398.00 |
| Max. Supply | 84,000,000.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X | Message Board |
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