The crypto market is facing massive liquidations, yet Litecoin (LTC) has emerged as a strong performer, surging over 70% from its January lows. While Bitcoin (BTC) and other altcoins experience a pullback, LTC is showing resilience, fueled by growing optimism over a potential Litecoin ETF approval.
Litecoin Defies Market Downtrend Amid $350M Liquidations
Despite widespread sell-offs, Litecoin’s price has surged, reaching its highest swing since January 18. CoinGlass data reveals that total crypto market liquidations hit $350 million in the last 24 hours, with over 110,000 traders affected. Bitcoin, Ethereum, Solana, Dogecoin, and XRP saw significant declines, triggering mass liquidations. The largest single liquidation occurred on Binance, wiping out a $7.58 million trade.
LTC ETF Approval Odds Soar
A major catalyst behind Litecoin’s price surge is the rising expectation that the U.S. Securities and Exchange Commission (SEC) will approve a spot Litecoin ETF. Data from Polymarket shows that the probability of LTC ETF approval has increased to 84%, up from 42% in January. The potential listing of Litecoin ETFs by major players like Canary Capital, Grayscale, and CoinShares is driving investor interest.
ETF analyst Eric Balchunas notes that the SEC is likely to view Litecoin as a commodity, similar to Bitcoin, due to its origins as a BTC fork. He anticipates that LTC ETFs could be among the next batch of cryptocurrency funds to receive regulatory approval, further fueling market optimism.
We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending… pic.twitter.com/29vMdciZxE
— Eric Balchunas (@EricBalchunas) December 17, 2024
Technical Indicators Suggest Further Gains
From a technical standpoint, Litecoin is poised for a potential breakout. It recently surpassed the $112.86 resistance level, forming an ascending triangle pattern. This pattern, combined with a dragonfly doji candlestick formation, signals a bullish reversal. Additionally, LTC has moved above the 50-week moving average, reinforcing its upward momentum.
Key Price Targets for Litecoin
If Litecoin clears its next major resistance at $146, analysts predict a potential rally toward the 50% Fibonacci retracement level at $227—an additional 65% gain from current levels. However, if LTC falls below the $80 support level, it could invalidate this bullish outlook.
Also Read: Litecoin (LTC) Price Surge Ahead: Elliott Wave Analysis Predicts 1,500% Gain by 2025
With growing market optimism and the possibility of an ETF approval, Litecoin’s upward trajectory could continue in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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