The price of Litecoin (LTC) has seen a significant increase of 7.5% over the past 24 hours, standing at €64.79, with a local high of $70.50 on October 16, 2024. This rally is mainly due to Canary Capital’s application for a Litecoin Spot ETF. The news has generated a lot of excitement among investors, who see this move as an opportunity for greater institutional participation in Litecoin.
The proposed ETF by Canary Capital, according to S-1 documents filed on Oct. 15, seeks to mirror the performance of the CoinDesk Litecoin Price Index (LTX). If approved by U.S. regulators, the ETF would offer investors direct exposure to Litecoin, potentially opening new doors for financial institutions to participate more actively in this market. This is a significant step for the cryptocurrency, which has been one of the biggest laggards compared to others such as Bitcoin and Ethereum.
Independent analyst 28 Crypto highlights that the ETF could be a key catalyst for the start of a new bullish cycle for Litecoin. Technical analysis supports this possibility, as the price of LTC is within an ascending parallel channel dating back several years, suggesting a possible breakout to the upside. According to this analyst, Litecoin could reach between $200 and $300 if the bullish scenario is confirmed, and he even projects a long-term Fibonacci extension target of over $2,000.
However, not all analysis is optimistic. Despite the enthusiasm generated by the ETF application, Litecoin has fallen more than 80% from its all-time high of $413.65 in May 2021. In comparison, the broader cryptocurrency market has only fallen 15%, reflecting the struggles Litecoin has faced.
On the other hand, open interest in the Litecoin futures market has reached its highest level in three months, with $258.94 million in unsettled contracts. This increase in open interest suggests that traders are anticipating further price increases. Furthermore, market funding rates have been positive, reinforcing the optimism surrounding Litecoin.
The ETF launch has revived interest in Litecoin, but analysts note that the market still faces technical challenges before a clear bullish trend can be confirmed. Everything will depend on how things develop in the coming days and the response of regulators.$LTC