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Litecoin’s price surged on Feb. 10, breaking out of its recent consolidation phase, as optimism around the potential approval of a spot LTC ETF this year continues to remain strong.
Litecoin (LTC) rallied over 10% to an intraday high of $114.33 on Monday. It has now soared 104% from its lowest point in 2024. The altcoin’s market cap was seated at over $8.5 billion while its daily trading volume doubled to nearly $1 billion.
The biggest driver behind LTC’s price surge is the growing anticipation of a spot Litecoin ETF getting the green light from the U.S. Securities and Exchange Commission by year-end. Polymarket data shows the odds of approval have jumped to 81%, with most traders betting on a launch this year.
While other crypto ETFs, like those for Solana (SOL) and Hedera (HBAR), are in the pipeline, the SEC might be more open to approving a Litecoin ETF because of its similarities to Bitcoin. Previously, Bloomberg analyst Eric Balchunas has speculated that Litecoin could be the next cryptocurrency to get an ETF, citing industry “chatter.”
Litecoin, being a Bitcoin (BTC) hard fork, operates on a proof-of-work network just like BTC, which means the SEC considers it a digital commodity. So, there’s really no good reason for the agency to deny a Litecoin ETF.
The altcoin’s price is thus expected to climb as traders bet on higher institutional demand leading up to the ETF approval.
Strong on-chain metrics support LTC rally
The current LTC rally was supported by solid fundamentals. According to CoinGlass data, open interest in the LTC futures market has jumped 10.8% in the past day to $549 million, with a positive weighted funding rate, which means the majority of traders are of the opinion that prices will climb higher.
Further, the total number of LTC holders has been rising over the past week, per Santiment data.
Meanwhile, large LTC holders, specifically those holding between 10k-100k LTC, have also been increasing over the past 10 days.
Current accumulation patterns reflect traders’ confidence in LTC, which is evident by its weighted social sentiment, which has also improved over the past few days.
On the 1-day LTC/USDT price chart, the MACD line is poised to cross above the signal line, which could signal a bullish reversal. Meanwhile, the RSI has climbed to 54, moving above the neutral mark, which means the momentum was shifting in favor of the bulls, though a move toward 60-70 would provide stronger confirmation.
Additionally, the Chaikin Money Flow index with a positive reading suggests strong buying pressure supporting LTC’s current rally, driven by an inflow of new money or capital.
According to pseudonymous analyst Carl Moon, Litecoin could rally in the short term. Notably, LTC has broken out of an ascending triangle pattern, a bullish signal that typically indicates a shift from consolidation to upward price momentum. As shown in the 4-hour chart he shared in a recent X post, the breakout occurred on Feb. 10, with the pattern’s measured move pointing to a $128 target.
Meanwhile, fellow analyst Santolita expects LTC to hit $200 by the end of February. (See below.)
Still on the road to $200 for $LTC.
When will we reach this target?
Imo, February. 🔥 pic.twitter.com/FwAsp4K3WI
— Santolita (@SantoXBT) February 10, 2025
At press time LTC was exchanging hands at $117.05 per coin.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
This article first appeared at crypto.news
