Should you buy Litecoin in December 2024
PHNOM PENH (CoinChapter.com) — Litecoin (LTC) looks poised to undergo a sharp correction in December 2024 after almost doubling its price since its year-to-date low of $49.90, established three months ago.
Litecoin Reaches Inflection Point That Preceded 45-60% Declines
The LTC/USD pair remains confined within a symmetrical triangle, with resistance near $100 and support near $66.
Despite several attempts, the historical price action shows that Litecoin has failed to break above the psychological $100 level. The volume profile supports the bearish case, showing declining trading activity during Litecoin’s attempts to breach higher levels.
LTC/USD weekly price chart. Source: TradingView
That could indicate a lack of buying interest at current prices, increasing the likelihood of a pullback toward $66.12, the lower trendline of the triangle. In other words, LTC’s price can decline 30% in December 2024.
A breakdown below this level could result in a further drop toward $40, which is aligned with historical support levels from 2020. Conversely, a breakout above the upper trendline could set Litcoin toward $130.
Macroeconomic Factors Could Send LTC Price Toward $125 in Early 2025
December 2024 might pose challenges, but the outlook for LTC in 2025 could turn optimistic, driven by external catalysts such as Donald Trump’s anticipated market-friendly policies and the potential launch of a Litecoin-focused exchange-traded fund (ETF).
Moreover, industry chatter about the US Securities and Exchange Commission (SEC) approving a Litecoin ETF has gained traction.
In October 2024, Canary Capital filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot LTC ETF. The proposed fund aims to hold Litecoin directly and track its daily net asset value based on the CoinDesk Litecoin Price Index (LTX), marking a critical step toward expanded institutional access to LTC investments.
Earlier this year, the SEC’s approval of physically backed Bitcoin ETFs and spot Ether ETFs paved the way for potential ETFs for tokens like LTC. These developments suggest a positive outlook for Litecoin’s integration into mainstream financial products, potentially boosting its adoption and liquidity in 2025.
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