Litecoin Bulls Charge as ETF Approval Odds Soar
1min read Litecoin, the seventh-largest cryptocurrency by market capitalization, has been consolidating in a bullish pennant on the 8-hour chart following a recent uptrend exhaustion. Technical analysis suggests a potential breakout, as LTC price surged 5.15% in the last 24 hours, while Bitcoin and other major altcoins like Ethereum struggled with uncertain markets and price stagnation.
Speculations of LTC's spot ETF approval have fueled market anticipation, with the odds of LTC ETF approval reaching 90% based on a Bloomberg analyst report. Looking at Litecoin's price on the 8-hour chart, the altcoin has been consolidating in a bullish pennant, suggesting a potential upward rally. LTC has been testing the upper key horizontal resistance zone within this bullish pennant, with its bullish momentum indicating a breakout above the $130-$135 zone.
According to an analysis from World of Charts, the bulls could push the price breakout, rallying toward the $150-$170 key zone in the short term and targeting $250 in the long run. However, if LTC faces rejection in this formation, a pullback is possible within the range. The price dip may retest the $110-$100 lower support following a failed breakout attempt on its bullish pennant.
On-chain metrics flash mixed signals. LTC's 24-hour Open Interest (OI) has risen by 4.8%, while trading volume has dropped by 24.61%. Whales hold 48% of LTC, and 84% of total holders are at a profit, with the market remaining predominantly bullish. Santiment data suggests optimism among investors, with LTC's social volume rising from 100 to 128 in one week. At press time, the altcoin's Long-to-Short Ratio stood above 1.5 in all timeframes.
The 24-hour drop in trading volume signals that only a few traders are actively buying or selling Litecoin. This suggests that long-term investors are holding their positions, waiting for higher prices, or that traders are uncertain and cautious about aggressive trading. However, since most HODLers are in profit, traders should expect less aggressive selling or buying as they observe L
