Investors in Litecoin [LTC] are keenly awaiting a decision on Canary Capital’s application for a Litecoin exchange-traded fund (ETF), with a deadline set for Monday, May 5th. While ETF analyst James Seyffart noted the U.S. Securities and Exchange Commission (SEC) has yet to delay the application, he suggested a delay remains the more probable outcome. This uncertainty hangs over Litecoin’s price, potentially keeping it below the crucial $90 resistance level.
The @CanaryFunds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5. SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it's Litecoin IMO. Personally think a delay is more likely but def something to watch pic.twitter.com/FilnUcMtUH
— James Seyffart (@JSeyff) May 4, 2025
Technical Analysis Points to Continued Downside Pressure
Despite a recent bounce from its April low of $63, Litecoin’s 1-day chart reveals a persistent bearish swing structure. For this structure to reverse, bulls would need to push the price decisively above the $96.5 swing high. Although shorter-term momentum appears bullish, as indicated by the D1 Awesome Oscillator, overall buying pressure has been weak over the past month, a concerning sign for investors. Furthermore, the $89.3 level coincides with the 78.6% Fibonacci retracement, a level from which LTC bulls have already faced rejection. This confluence of resistance suggests that another rejection at this price point is more likely than a significant bullish breakout.
Also Read: Litecoin ETF Decision Today: LTC Price Surges Amid SEC Deadline
Price Consolidation Expected Ahead of Potential Liquidation Events
Currently trading within a narrow range of $83.3 to $88.8, Litecoin’s immediate future appears to involve continued consolidation. Data from the 2-week liquidation heatmap highlights significant price interest around the $80.3 and $91.4 levels. With the $91.4 mark being closer to the current price, it represents a more immediate potential target.
However, the prevailing lack of strong bullish sentiment suggests that Litecoin may ultimately test both liquidation levels before establishing its next significant price movement. The price action of Bitcoin [BTC] in the short term will also likely play a crucial role in influencing Litecoin’s trajectory.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
