Litecoin (LTC) could be on the brink of a historic rally to $5,000 after the U.S. Securities and Exchange Commission (SEC) acknowledged CoinShares’ filing for a spot Litecoin exchange-traded fund (ETF). This significant milestone signals a step closer to ETF approval, fueling optimism in the crypto market. Bloomberg analysts James Seyffart and Eric Balchunas have given a 90% probability of approval by 2025, citing Litecoin’s non-security classification.
Currently, Litecoin trades at $129, reflecting a 4% drop over the past 24 hours. However, market sentiment remains overwhelmingly bullish as institutional investors prepare for potential ETF approval. Historically, spot ETFs have been a game-changer for crypto assets, as seen with Bitcoin and Ethereum. If Litecoin’s ETF is approved, it will allow institutional investors to gain exposure without holding LTC, significantly boosting adoption and liquidity.
Analysts Predict 40x Rally for Litecoin
Crypto analyst Crypto Surf has identified a symmetrical triangle breakout on Litecoin’s six-month chart, a technical pattern that often precedes explosive price movements. The breakout above key resistance levels suggests a bullish continuation, with LTC potentially surging 40x to reach $5,000.
Supporting this outlook, another prominent analyst, Professor Moriarty, highlights the formation of a bull flag on Litecoin’s daily chart. This pattern, coupled with LTC’s ability to hold key support levels, suggests a short-term price target of $218, with the potential for further upside.
Whale Accumulation and Market Sentiment
Whale investors have been actively accumulating Litecoin, with over $512 million in LTC purchased in the last two weeks. This accumulation indicates growing confidence in the asset’s future performance.
Moreover, Litecoin’s open interest (OI) has surged to its highest level since May 2021, hitting $869 million on February 20, 2025. Historically, rising open interest alongside price increases suggests strong bullish momentum.
Will Litecoin Outperform Ethereum ETFs?
While a spot Litecoin ETF could trigger a parabolic rally, its success depends on investor demand and whether it can outperform Ethereum ETFs, which have faced sluggish inflows. If institutional adoption picks up, Litecoin’s market capitalization could skyrocket to $377 billion, cementing its position as a leading cryptocurrency.
With technical indicators aligning and institutional interest growing, Litecoin could be on the cusp of a historic breakout to $5,000.
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: Why is Litecoin Price Up 70% as Crypto Market Liquidations Hit $350M?
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