As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull runs and bear markets. With Litecoin (LTC) surging by 7.5% in the last 24 hours, I find myself intrigued by the potential implications of Canary Capital’s recent filing for a spot Litecoin ETF.
As an analyst, I observed a significant increase in the value of Litecoin (LTC) over the past day, with a notable rise of approximately 7.5%. This surge pushed the coin’s price to around $70.50 on October 16. The uptick seems to be driven by traders flocking to the market in response to the excitement generated by Canary Capital’s recent filing for a Litecoin-based exchange-traded fund (ETF).
At its local high, LTC was trading for as much as $72, its best since July 2024.
Crypto market cheers first Litecoin ETF filing
Based on the S-1 filings it submitted on October 15th, the investment firm Canary Capital has officially filed for spot Litecoin Exchange Traded Funds (ETFs) with U.S. regulatory bodies.
The Canary’s suggested ETF aims to directly own Litecoin, striving to match the performance of the CoinDesk Litecoin Price Index (LTX). If granted approval, this ETF could provide investors with a more straightforward means to invest in LTC, potentially increasing opportunities for institutional participation in the cryptocurrency market.
Recent developments have led crypto experts to issue boldly optimistic predictions about Litecoin, given that it has been underachieving compared to other cryptocurrencies.
The price has dropped more than 80% from its peak of about $413.65 in May 2021, while the overall cryptocurrency market has decreased by roughly 15%.
For example, an independent crypto analyst views the ETF (Exchange-Traded Fund) as a possible trigger for a fresh upward trend, combining this perspective with a technical prediction based on the Litecoin to US Dollar (LTC/USD) monthly chart.
Based on the given graph, it appears that Litecoin’s price movements have been confined to an escalating diagonal trading channel over many years. This pattern is often associated with a positive outlook, suggesting a possible breakout could occur.
Based on hitting crucial support points, the price seems poised for an upward trend that could reach between $200 and $300, as suggested by 28 Crypto. Moreover, they predict a potential Fibonacci extension goal of over $2,000 in the distant future.
According to Analyst Investing Haven’s perspective, the present trading zone for Litecoin is seen as a suitable moment for investors to “purchase at a discount.” This is based on their belief that the digital coin’s value could rise and reach its estimated resistance level from June, which is approximately $88.
According to recent analysis, Litecoin’s current price movement falls within the predicted range. There might be an opportunity for investors to buy at a discount in the near future, specifically between approximately $57.85 and $61.15.
“This might be a solid long-term entry.”
Today’s increase in Litecoin (LTC) can primarily be attributed to the optimistic perspective arising from Canary Capital’s ETF application submission for Litecoin.
Litecoin OI climbs to 3-month high
The level of curiosity about the Litecoin futures market has reached a three-month high after an update on Canary Capital’s ETF filing was announced.
Currently, as of October 16th, the amount of open futures contracts stands approximately at $258.94 million, marking an increase from the previous day’s figure of $232 million. Simultaneously, the market’s weekly funding rates are showing a positive trend at 0.262%.
The increase in open positions among traders indicates they’re preparing for potential price rises, which is typically interpreted as a positive or optimistic sign, known as a ‘bullish signal’.
Additionally, the fact that the market’s funding rates are favorable suggests that traders are prepared to overpay to keep their long positions active, which lends support to the ongoing bullish trend.
Litecoin falls short of a decisive breakout
As a crypto investor, I’ve noticed that Litecoin’s gains today are part of a rebound we’ve seen since it tested the lower trendline of its current symmetrical triangle as support. However, as of October 16th, Litecoin (LTC) is still confined within this triangle, indicating potential downward pressure ahead in the near term.
It’s worth mentioning that LTC has struggled to break above a significant resistance level, which includes the upper trendline of the triangle, the 200-day exponential moving average (often referred to as the 200-day EMA, or the blue wave), and the 0.382 Fibonacci retracement line.
Moreover, the current Daily Relative Strength Index (RSI) hovers near 62, slightly below the overbought level of 70.
Technically speaking, this indicates that the potential for the LTC price to decrease might grow stronger, since any continued uptrend could stall if demand starts to weaken.
It seems that analysts at LTC predict a potential lowest point for October could be around $84. This price point aligns with the triangle’s bottom trendline and the 0.236 Fibonacci retracement level.
Despite the current bearish outlook, if there’s a strong surge in Litecoin‘s price exceeding the combined resistance level, it could potentially overturn the bearish trend and propel the coin towards the potential target of approximately $80 at the 0.5 Fibonacci retracement line by October.
Read More
- DYM PREDICTION. DYM cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- POPCAT PREDICTION. POPCAT cryptocurrency
- SKEY PREDICTION. SKEY cryptocurrency
- TURBO PREDICTION. TURBO cryptocurrency
- Top gainers and losers
- ETH CAD PREDICTION. ETH cryptocurrency
- MPL/USD
2024-10-16 12:37