Litecoin price jumped by over 7% on Monday, August 4, and was hovering near its highest level since March this year.
Summary
- Litecoin price is about to end its three-year consolidation.
- LTC ETF approval odds as jumped to over 80%.
- Technicals point to more LTC gains in the near term.
Litecoin (LTC) jumped to a high of $120, up by nearly 90% from its lowest level this year. Its daily volume surged to nearly $900 million, while its market cap soared to $9 billion.
LTC ETF approval odds jump to 80%
Litecoin price rose on Monday as investors remained optimistic that the Securities and Exchange Commission will approve LTC funds by Grayscale, CoinShares, and Canary Capital.
Polymarket data shows that the odds of the agency approving these funds have risen to 80%. The SEC has set deadlines of October 2 for Canary’s ETF application, and October 10 and 23 for the Grayscale and CoinShares funds, respectively.
Expectations are based on the agency’s prior approval of spot Bitcoin (BTC) ETFs, which have attracted over $55 billion in inflows. Litecoin is similar to Bitcoin in that it is a proof-of-work coin with a supply cap of 84 million. Bitcoin has a cap of 21 million coins.
Litecoin is also highly decentralized and liquid, with daily trading volume rising to over $1 billion on some days.
There are also signs that an LTC ETF would attract institutional capital. For example, the Grayscale Litecoin Trust, which charges an annual fee of 2.50%, has already attracted over $246 million in assets.
Recent data shows that demand for altcoin ETFs is still vibrant. Ethereum (ETH) have had a cumulative inflow of over $10 billion, while popular XRP and Solana funds like XXRP, UXRP, and SSK have had millions of dollars in inflows.
Litecoin price technical analysis
The daily timeframe shows that LTC has been in a three-year consolidation phase. It has remained within the resistance level at $140 and the support level at $41 since June 2022.
This prolonged consolidation mirrors that of XRP, which remained inside a narrow range for years before its recent breakout.
Litecoin price has moved above the 50-week and 100-week moving averages. It is also nearing the 23.6% Fibonacci retracement level at $130, while the Relative Strength Index has jumped above the neutral point at 50.
Therefore, the token could continue rising as bulls target the upper side of the channel. A break above that resistance would point to further gains to $227.80, up by 92% from the current level. A drop below the support at $93 would invalidate the bullish forecast.
