Litecoin nears key resistance, with indicators hinting at a 75% surge this year.
Litecoin reached a new high of $128.37 on Thursday, and it has increased by roughly sixty percent since it reached its lowest point of the year. The most important factor that has contributed to the rise of Litecoin is the growing possibility that the Securities and Exchange Commission would give its approval to a spot Litecoin exchange-traded fund later on in this year.
Canary Capital, Grayscale, and CoinShares are among the companies that have submitted applications for a spot Litecoin fund. Polymarket reports that the likelihood of the Securities and Exchange Commission (SEC) granting approval for a spot Litecoin exchange-traded fund has increased to 85%, which indicates that the market has a high level of confidence in a listing.
Snother survey indicates that there is a 52% chance that the agency will ratify the fund by the 31st of July. Coins that use proof-of-work, such as Litecoin and Dogecoin, have a considerably higher chance of getting regulatory clearance than tokens that use proof-of-stake.
While the Securities and Exchange Commission (SEC) considers Litecoin and Dogecoin to be digital commodities, it classifies other tokens as securities. Additionally, the price of Litecoin has grown as a result of the jump in demand in the futures market.
Since the beginning of this month, open interest in Litecoin futures has increased to $870 million, which is an increase from the previous low of $420 million. An increase in the interest in futures indicates that investor positioning and speculation are maturing.
Litecoin price analysis
Based on the weekly chart, it is evident that the price of Litecoin has increased during the past few weeks. It has surpassed the critical resistance level at $114.05. Additionally, it has gone above the 50-week Exponential Moving Average for the past five weeks.
Due to the fact that it formed the upper limit of an ascending triangle, which is a pattern that is generally regarded to be bullish in technical analysis, this level was notable.
The formation of a tilted triple-bottom pattern, which is another bullish indication, has also occurred with Litecoin. The token is also in the process of producing the second phase of the Elliott Wave pattern, which is often the strongest and longest phase.
The third phase of the pattern is typically the longest phase. Considering these elements, it is possible that the price of Litecoin will continue to increase, with the next objective being $225, which is the 50% Fibonacci retracement level.
This would represent a 75% increase from the current price. This positive perspective, on the other hand, would be rendered meaningless in the event that the price of Litecoin dropped below the support level at $80.
