Litecoin Hits Five-Month High on ETF Optimism and $100M MEI Pharma Investment

Litecoin surged to a five-month high of $128.40 on Tuesday morning, driven by growing optimism around the potential approval of a Litecoin-based ETF and a significant corporate investment by MEI Pharma [1]. The price rally followed a weekend of strong gains, with Litecoin rising nearly 12.3% in the past week and 5.8% in the last 24 hours, according to CoinGecko [1]. The broader market environment has also been supportive, with Litecoin capturing a 14.5% share of crypto transactions on the CoinGate platform in July 2025, trailing only Bitcoin [1].

The surge has been attributed in part to the $100 million private placement by MEI Pharma, a publicly traded pharmaceutical company, which announced its transformation into a Litecoin treasury firm at the end of July [1]. Illia Otychenko, lead analyst at CEX.IO, noted that this move was the most significant catalyst for Litecoin’s recent performance, surpassing the impact of ETF-related speculation [1]. He argued that while the high probability of an ETF approval—currently at 80% on Polymarket—has been part of the conversation since February, the MEI Pharma investment introduced fresh momentum to the market [1].

Institutional interest in Litecoin appears to be on the rise, with multiple ETF applications filed by major players such as Grayscale Investments, CoinShares, and Canary Capital. These applications were submitted in January and February 2025, with the SEC delaying its decision on Grayscale’s proposal until October 2025 [1]. Despite the regulatory delays, the approval of an ETF remains a high probability event, with analysts assigning a 90% chance of eventual approval [1]. This regulatory clarity—especially given that the CFTC classifies Litecoin as a commodity—has provided further confidence to investors [1].

Merchant adoption is also playing a key role in supporting Litecoin’s price action. According to CoinGate, merchants are increasingly holding Litecoin as part of their crypto revenue, with 40.9% of crypto earnings retained in LTC in July 2025, up from 27% in 2024 [1]. This shift is helping to reduce sell pressure and stabilize the price, particularly during volatile periods [1].

Despite the positive momentum, technical indicators suggest caution. Early signs of bearish divergence are evident in the MACD histogram, and maintaining support above $113.24 will be crucial to validate the current rally [1]. The price has broken above key technical levels, but the $124–$131 range remains a critical resistance zone [1].

The Altcoin Season Index has risen by 51.72% in the past month, indicating a favorable environment for altcoin performance [1]. Historically, Litecoin has shown a tendency to outperform during these cycles, and current conditions appear to align with those patterns [1]. With continued ETF optimism and growing adoption, Litecoin may be on the cusp of a more substantial breakout.

Sources:

[1] Decrypt.co - https://decrypt.co/333561/litecoin-hits-five-month-high-amid-etf-optimism-and-100m-mei-pharma-treasury

[2] Coinbase - https://www.coinbase.com/en-gb/price/litecoin

[3] Economic Times - https://m.economictimes.com/crypto-news-today-live-04-aug-2025/liveblog/123081462.cms