The cryptocurrency market is abuzz as the U.S. Securities and Exchange Commission (SEC) is set to make a crucial decision on the Canary Litecoin ETF today, May 5th. This development coincides with a notable surge in Litecoin’s (LTC) market activity, with daily trading volumes jumping by an impressive 31% to over $338 million.
Bloomberg ETF strategist James Seyffart has highlighted the unique position of the Canary Funds’ Litecoin ETF proposal. While the SEC has issued delays for several other crypto ETF applications, a decision on the Litecoin fund has yet to be postponed. This has fueled speculation among market participants, with analysts suggesting Litecoin possesses a higher probability of approval compared to other altcoins like XRP, Solana, and Cardano, citing its distinct characteristics and established regulatory history.
Analyst Optimism and SEC Uncertainty Surround Potential Approval
Market sentiment appears cautiously optimistic regarding the Litecoin ETF. Recent reports indicate the odds of approval for a Litecoin ETF hover around 90%, slightly higher than the 85% assigned to XRP ETFs. Dogecoin and Cardano ETFs also show strong potential, with approval probabilities standing at 80% and 75%, respectively. Polkadot, HBAR, and Avalanche ETFs remain in contention, with chances estimated at 75%, 80%, and 75%, respectively.
Despite this apparent optimism, Seyffart personally anticipates a delay remains the most likely outcome. He urges market observers to closely monitor the SEC’s decision as the deadline approaches. The SEC continues to navigate the complex regulatory landscape surrounding crypto ETFs, even as demand for already-approved Bitcoin ETFs shows renewed strength with significant inflows reported last week.
Technical Analysis Points to Potential Litecoin Price Surge
Adding to the anticipation surrounding the ETF decision, technical analysis suggests a potential significant price rally for Litecoin. According to analyst Crypto Patel, LTC appears to have broken out of a multi-year resistance line after a prolonged period of consolidation between $65 and $85. As of press time, Litecoin is trading around the $87 mark, exhibiting increasing bullish momentum.
$LTC MACRO BREAKOUT – NEXT LEG INCOMING?#LITECOIN confirmed a breakout above its multi-year resistance line after holding the Best Accumulation Zone for months!
— Crypto Patel (@CryptoPatel) May 4, 2025
🔸 Support Held: ~$65
🔸 Accumulation Zone: ~$85-$65
🔸 Short-Term Target: $255/$500
🔸 Long-Term Target:… pic.twitter.com/wrFb0bpqT0
Crypto Patel has set short-term price targets for LTC at $255 and $500. Looking further ahead, the analyst predicts long-term targets ranging from $1,000 to over $1,458. “Despite testing investors’ patience, LTC remains poised for a sharp move,” Patel stated, emphasizing the potential for a dramatic surge in the current bull market, with the $500 target potentially achievable in the near term. The approval of the Canary Litecoin ETF could act as a significant catalyst, further propelling this anticipated rally.
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.
Also Read: Litecoin [LTC] Price Surges as Whale Accumulation Signals Bull Rally
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
