Litecoin, often referred to as the “silver to Bitcoin’s gold,” has been making headlines recently. Its price has been on the rise, outperforming many other altcoins.
Litecoin is gaining attention as its price dominance against Bitcoin continues to rise. According to blockchain analytics firm Santiment, Litecoin has seen a 25% increase in its ratio against Bitcoin this February.
The surge comes alongside increased active addresses and bullish discussions in the market. However, analysts warn that a minor retracement could be on the horizon.
ETF Speculation Drives Market Excitement
The biggest buzz surrounding Litecoin right now is the speculation about an exchange-traded fund. Many experts believe there is a high chance—about 90%—that a Litecoin ETF will get approval by 2025.
This optimism stems from its listing on the Depository Trust & Clearing Corporation (DTCC) website and the ongoing review by the U.S. SEC.
If the ETF gets the green light, it could be a game-changer. A surge in investor interest and fresh capital inflow could push Litecoin’s price even higher. On the other hand, if the SEC rejects the proposal or the hype fades, the coin could face a significant drop in value.
Litecoin’s Price Action and Market Performance
At present, Litecoin is trading at $127.41, marking an 8% gain in the last 24 hours. Despite the price increase, trading volume has declined by 23.84%, suggesting some investors may be taking profits. Litecoin’s market capitalization now stands at $9.62 billion.
Analysts note that Litecoin is outperforming the broader crypto market, showing signs of an asymmetric rally. The coin’s futures market also reflects strong investor sentiment, with open interest consistently reaching $140.
Also Read: Litecoin Sees Surge In Trading And Payments, Jumps To $73
Key Resistance Level Identified
Crypto analyst, Ali Martinez has pointed out an important resistance level that Litecoin must break to confirm a bullish trend. According to Martinez, Litecoin needs to close above $136 on the daily chart. If this happens, it could signal the start of a sustained upward move.
Despite uncertainties in the overall crypto market, Litecoin has shown resilience. Its recent performance suggests that investors remain confident in its long-term potential.
Litecoin’s recent price movement and ETF speculation have put it in the spotlight. While excitement is growing, the market remains unpredictable.
If regulatory approval comes through, Litecoin could experience a major boost. However, any setback in the ETF process or market conditions could reverse its gains. Investors will be watching closely as the situation unfolds.