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4 weeks ago
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ARTICLE AD BOX
- Analysts predict that the potential approval of a spot Litecoin ETF could lead to increased institutional interest, potentially pushing LTC’s price beyond $200.
- Litecoin’s open interest in the futures market rose to a three-month high, reflecting positive trader sentiment.
Litecoin (LTC) has experienced a notable price rise with nearly 10% gains in the 7-day frame. The surge follows growing anticipation surrounding a possible spot Litecoin ETF application by asset manager Canary Capital. Moreover, crypto analysts expect the LTC price to rally beyond $200.
According to documents filed on October 15, the asset manager submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC) in a bid to secure approval for a spot Litecoin ETF, reported CNF. This ETF would be designed to directly hold Litecoin. Meanwhile, its value would track the CoinDesk Litecoin Price Index (LTX).
This application is the first of its kind in the U.S. as no other asset manager in the region has ventured into such products. As reported by CNF, Canary Capital also filed for a spot in XRP ETF earlier this month, the hype of which also extended into the LTC ETF application.
If approved, the introduction of a spot Litecoin ETF could mark a surge in institutional influx for LTC without direct exposure. Analysts speculate that this could push the Litecoin price higher.
Litecoin Price To Rally?
Optimism is growing among analysts as Litecoin price has struggled in recent times. Moreover, even the crypto market has declined by around 15%. Also, LTC price remains down more than 80% from its all-time high of approximately $413.65, recorded in May 2021.
Despite the current underperformance, analysts view the potential ETF as a possible catalyst for future growth in Litecoin price. Analyst 28 Crypto suggests that the combination of the ETF application and a favorable technical outlook on the LTC/USD monthly chart could lead to further gains.
The chart shows that LTC has been trading within an ascending parallel channel for years. This condition historically indicates the potential for a breakout. Hence, the analyst projects a possible price rally toward the $200-$300 range with long-term Fibonacci extension targets exceeding $2,000.
In a similar vein, analyst Investing Haven also sees the current price range as an ideal “buy the dip” opportunity. He believes Litecoin could soon test its June resistance level around $88. He also suggested that this could provide an attractive long-term entry point for investors.
The enthusiasm surrounding Canary Capital’s ETF filing is further supported by an increase in open interest in the Litecoin futures market. On October 16, open interest rose to $258.94 million, up from $232 million the previous day, marking the highest level in three months. Besides, Litecoin also secured another milestone earlier this month with its hashrate surging to 1.23 PH/s Hashrate, reported CNF.
This surge in open interest reflects traders positioning themselves for further price appreciation. However, on Thursday, October 17, the LTC market slowed down a bit with open interest falling 0.56% to $261.66 million. Nonetheless, the LTC price remained resilient with 0.81% gains.
Courtesy: CoinglassAdditionally, the market’s funding rates have turned positive, standing at 0.262% per week. This indicator suggests that traders are willing to pay a premium to hold long positions in LTC. Hence, the current investor sentiment also reinforces the momentum behind its recent price rise.
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