Litecoin Surges 5.15% on ETF Hopes, Bulls Eye $150-$170

Litecoin's price has surged by 5.15% to $122, driven by growing optimism surrounding a potential spot ETF approval, which is now seen as having a 90% likelihood. This rally comes amidst a challenging backdrop for major cryptocurrencies like Bitcoin and Ethereum, indicating a robust bullish sentiment in the market.

Analyzing Litecoin's price on the 8-hour chart reveals a consolidation phase forming a bullish pennant, which typically suggests a potential upward rally. Traders are closely watching for a breakout above the $130-$135 barrier, with a successful breakout potentially pushing the price towards a target of $150-$170 in the near term, and long-term aspirations set at $250.

Recent data indicates that Litecoin's 24-hour Open Interest (OI) has increased by 4.8%, although trading volume has decreased by 24.61%. This discrepancy may suggest caution among traders despite the price rally. On the other hand, whales hold a significant 48% of total LTC, indicating a strong accumulation phase among large investors. Furthermore, 84% of all holders are currently in profit, reinforcing a bullish sentiment.

In the coming weeks, the movements of on-chain metrics, combined with technical developments and any updates regarding the spot ETF, will likely be decisive in determining Litecoin's next significant price movements. The observed drop in trading volume over the past 24 hours indicates a potential hesitation among traders, suggesting that long-term investors might be awaiting more favorable conditions before entering or exiting positions. Given that most HODLers are currently in profit, aggressive selling seems less probable, which could stabilize LTC's price in the near term.