Litecoin Surges 20% Amid ETF Speculation, Room for Growth Despite High Profits

Litecoin's price has surged by 20% over the past two days, topping $132 amid renewed speculation about the approval of an exchange-traded fund (ETF) in the US. According to analysts, the odds of Litecoin ETF approval in 2025 are as high as 90%, making it the altcoin with the highest approval odds. However, the final deadline for the US Securities and Exchange Commission (SEC) is October 2025.

On the daily chart, Litecoin has been bullish but remains within the $95-$140 price range seen since last November. The daily Relative Strength Index (RSI) has not yet reached the overbought zone, suggesting that Litecoin, often referred to as "digital silver" or "Bitcoin's little brother," still has room for growth. However, unless Bitcoin surges beyond $100,000, Litecoin's range-high at $135 could become another sell-zone, potentially leading to a sell-off from swing traders who jumped on the buying opportunity during last week's de-leveraging event.

When zoomed out on the higher timeframe (weekly chart), the next key level for Litecoin would be $180. The $100-$180 range was a key range in 2021 before Litecoin extended its winning streak to over $280. However, another short-term pitfall worth considering for late FOMO speculators is the high level of unrealized profit amongst Litecoin holders. At the time of writing, data revealed that 73% of Litecoin holders were in profit. This means that Litecoin's sustained rally could be capped if holders begin booking profits in large numbers.

In conclusion, Litecoin's ETF speculation has been a great opportunity for traders. However, long-term holders have massive unrealized profits that could cap extended recovery in the short term if they book profits. As always, it is essential to conduct thorough research and consider multiple factors before making any investment decisions.