11 Feb 2025 Jane Whitmoore
Litecoin (LTC) Spikes Amid ETF Updates
Since the previous week, Litecoin (LTC) has surged more than 20%, regaining market momentum. Due to its price increase, LTC continues to rank among the top 20 cryptocurrencies by market capitalization in terms of daily and weekly gains. As of this writing, Litecoin was up 8.15% over the previous day to $126.80, on pace to see gains for the fourth day in a row since February 7.
Source: CoinMarketCap
The biggest increase occurred today, as Litecoin surged from $107 to $131, breaking through the daily SMA 50 barrier at $110.58. LTC has been rising as a result of rising expectations for a potential Litecoin exchange-traded fund (ETF).
Recent updates on current crypto-related ETF applications have been released by the U.S. Securities and Exchange Commission. The 19b-4 filing by Canary Capital for a spot Litecoin ETF was formally recognized by the regulator last week, making it the first of its sort outside of Bitcoin and Ethereum.
The SEC now has 240 days to make a decision, and a public comment process has already started.
It is anticipated that if investors embrace Litecoin exchange-traded funds (ETFs) at the same pace as Bitcoin ETFs, they may get inflows of up to $580 million. An equivalent amount of Litecoin would provide more than $500 million in inflows to LTC ETFs, while about 6% of Bitcoin's supply is now held in various ETFs.
For the first time in weeks, Litecoin broke through the daily SMA 50 at $110 after stabilizing below it for several days.
On February 3, LTC fell to lows of $81.09 amid a sell-off in the cryptocurrency market. Litecoin's price resumed to trading between its daily moving averages of 50 and 200, at $110.27 and $85, respectively, as the price bounced back.
In today's session, Litecoin jumped above the daily SMA 50 mark, giving bulls the upper hand. A prolonged breakthrough of the Litecoin price above this critical level, which may aim for the $135 to $150 range, will be watched in the coming days. The bulls may be getting a small edge, as shown by the daily RSI's shift just above the midway.
However, if its price declines, LTC can reenter the consolidation below the daily SMA 50, with significant support expected at the daily SMA 200 at $85.73.
