SEC Delays Litecoin ETF Decision; LTC Drops to $82 as Support Holds

Litecoin (LTC) tumbled nearly 6% earlier today following an official announcement from the U.S. Securities and Exchange Commission (SEC) to delay its decision on the proposed Canary Funds Litecoin ETF. At the time of writing, LTC is trading at $82.38—down 5.97% in the past 24 hours—with daily trading volumes spiking 50% to $553 million. The delay in approval has clearly triggered a wave of selling pressure across the market.

The SEC’s latest postponement was largely expected. In its May 5 filing, the regulator stated it would seek public comments on whether the Litecoin ETF complies with rules intended to prevent fraud and manipulation. Comments are due by May 26, with rebuttals set for June 9. The agency’s cautious approach is part of a broader regulatory scrutiny affecting multiple crypto ETF proposals, including those tied to Solana (SOL) and XRP.

Investors Eye Key Support Zone at $81.54

Despite the downturn, investors and analysts are not ruling out a swift recovery. The current support level at $81.54 is seen as a critical threshold for LTC. Should the price hold firm, a reversal toward $148 could be in play, according to technical analysis.

Popular crypto analyst Crypto Patel remains optimistic. He suggests that Litecoin is trading within its “Best Accumulation Zone” between $65 and $85. Patel notes a breakout from LTC’s long-standing resistance line and believes the token has significant upside potential, giving ambitious short-term price targets of $255 and $500.

SEC Delay Not a Major Concern, Say Market Experts

While delays often rattle markets, industry voices urge calm. Nate Geraci, President of ETF Store, sees the SEC’s move as procedural rather than pessimistic. “Wouldn’t read too much into SEC delaying decision… Still think the vast majority of existing crypto ETF filings will be approved before year-end, if not sooner,” he said.

For now, all eyes remain on Litecoin’s price action in the coming days. If bulls can defend the $81.54 support zone, a strong rebound could restore optimism and set the stage for a larger 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 ETF Decision Looms: Will Approval Break Bearish Price Hold Below $90?

Andrew Chen

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.