Litecoin on the Verge of Breaking Its 3-Year Consolidation
Litecoin (LTC) surged over 7% on Monday, reaching its highest level since March at $120. This rally comes as investors remain optimistic about the SEC’s imminent approval of Litecoin exchange-traded funds.
LTC ETF Approval Chances Exceed 80%
Data from Polymarket shows that the odds of the agency approving these funds have risen to 80%. The SEC has set deadlines for October 2nd for Canary’s ETF application, and October 10th and 23rd for Grayscale and CoinShares funds, respectively.
This outlook mirrors the recent approval of the first Bitcoin spot ETFs, which have attracted over $55 billion in capital. Like Bitcoin, Litecoin is a decentralized and liquid cryptocurrency with a supply cap of 84 million tokens.
Institutional investors also appear drawn to existing LTC products, such as the Grayscale Litecoin Trust, which already manages more than $246 million in assets.
Technical Analysis : Additional Gains on the Horizon
From a technical perspective, LTC’s price chart shows that the token has remained in a three-year consolidation phase, trapped between $140 and $41 since June 2022. This pattern resembles that of XRP, which experienced a long stagnation period before its recent takeoff.
Litecoin has now broken above its 50 and 100-week moving averages and is approaching the Fibonacci retracement level of 23.6% at $130. Its relative strength index (RSI) has also surpassed the neutral threshold of 50.
Most significantly, LTC has broken through its resistance at $122, suggesting the token should return to its resistance zone around $136 in the coming days. This represents a potential increase of 10%.
However, caution is warranted in this resistance zone, with careful attention to Bitcoin’s movements. If Bitcoin fails to exceed $133,000, a retracement to $110,000 in September remains possible. In this scenario, LTC could plunge back to $104 before seeking higher levels by year-end.
Technical signals suggest further gains in the short term. A breakout above the resistance at $140 would open the path to a potential 92% advance up to $227.80. Conversely, a drop below $93 would invalidate the bullish scenario.
After a lengthy consolidation phase, Litecoin finally appears poised to resume its upward trajectory. The imminent SEC approval of LTC ETFs, combined with encouraging technical indicators, offers solid price prospects for this cryptocurrency.
How to Buy Litecoin (LTC) on Bitget ?
Litecoin is still in an accumulation phase before targeting $220. The arrival of an LTC ETF could boost LTC’s price in the coming months. Here’s a guide to obtaining the token on Bitget :
- Sign up on Bitget : Create an account on Bitget.com or via the app using an email address or phone number. Complete KYC verification to activate all features.
- Deposit funds : Transfer USDT, BTC, or another cryptocurrency from an external wallet to your Bitget account.
- Access the LTC trading pair : Search for LTC/USDT in the “Spot” section. Check the current price (approximately $120).
- Place an order : Opt for a market order for instant purchase or a limit order for a target price. Confirm the transaction.
