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Litecoin price rose by almost 10% on Saturday, becoming one of the best-performing coins asthe odds of an exchange-traded fund approval rose.
Litecoin (LTC) rose for the third consecutive day, reaching its highest level since Jan. 18, and 47% above its lowest point this month.
Its rebound was because CoinShares, a company with nearly $10 billion in assets, filed for a spot LTC with the Securities and Exchange Commission. It joins Canary, which also applied for a similar fund a few months ago.
Crypto analysts are optimistic that the U.S. Securities and Exchange Commission (SEC) will approve a Litecoin ETF because of its similarity with Bitcoin. Litecoin is a Bitcoin hard fork and is a proof-of-work cryptocurrency that the SEC does not view as an unregistered security.
A Polymarket poll has an 81% chance that the SEC will give a go-ahead for the approval. Earlier this month, the agency sought some comments from Canary, a common step towards an approval.
A Litecoin ETF approval will be a positive thing for the coin as it may bring fresh institutional capital. However, the recent trends in Ethereum (ETH) and Bitcoin (BTC) ETFs show that institutional demand may be thin.
Spot BTC ETFs have accumulated almost $40 billion in assets, while Ethereum funds have just $2.8 billion.
Litecoin price analysis
The weekly chart shows that the LTC price has bounced back from the 2022 low of $42.17 to near $130. It has moved above the key resistance level at $113.66, its highest swing in April last year and July 2023.
Litecoin has remained above the ascending trendline that connects the lowest swings since June 2022. It has moved above the 50-week moving average. It’s also forming a small bullish pennant chart pattern.
A break above the resistance at $147, its highest swing in December, will point to more gains, potentially to the psychological level at $200. The uptrend will become invalid if the coin drops below the support at $92.7.
This article first appeared at crypto.news
