Litecoin (LTC) price surged 6.70% today, reclaiming the $70 level for the first time in about two months. The notable surge came after investment firm Canary Capital revealed it is looking to launch a Litecoin exchange-traded fund (ETF) with the SEC.
Considering the ETF filing as a catalyst, this on-chain analysis highlights how Litecoin’s price could see a significant surge. If Litecoin’s price continues to rise, investor interest could increase. This could also allow long-term investors to profit after months of volatility.
ETF Speculation Lifts Litecoin
Litecoin’s 6.70% price increase today puts it as one of the biggest gainers among the top 100 coins. Data from CoinGecko shows that it comes after Dogecoin (DOGE), which is up 8% in the past 24 hours.
As mentioned above, Canary Capital’s announcement that it is looking to launch a Litecoin ETF with the US SEC is the driving force behind the rally. However, on-chain data from EntoTheBlock reveals that a significant portion of Litecoin holders have yet to benefit from the recent price surge.
According to the In/Out of Money Around Price (IOMAP) metric, around 840,000 LTC addresses bought their coins between $71.54 and $81.14. This indicates that these holders are still “underwater,” as the current price of LTC is still below their entry levels.
Until LTC breaks through this level, those who bought in this range may continue to face selling pressure as they seek to break even. However, if the Litecoin price continues to rise, these holders may be ready to make significant profits. As a result, this could also allow Litecoin to break through $80.14.
Beyond that, Litecoin’s open interest rose to $243.09 million. Open interest, as it is commonly called, refers to the total value of open contracts in the market. When it falls, traders remove liquidity from contracts tied to the cryptocurrency.
On the other hand, the rise indicates an increase in speculative activity with LTC. From a trading perspective, a rise in open interest and price could lead to further appreciation in the price.
LTC Price Prediction: Breakout from the Bearish Channel
Litecoin showed impressive price action following the ETF filing news, breaking out of its previous descending channel. This breakout signals a potential reversal, which could end the bearish pressure that has been holding LTC back in the short term.
If this positive momentum continues, Litecoin could see a massive 35% jump to $95.60. In a more optimistic scenario, LTC could cross the $100 threshold again, reigniting investor confidence and attracting more buying activity.
However, it is important to monitor developments surrounding the ETF filing with the SEC. If the chances of approval start to diminish, LTC could return to around $63.40. This scenario would highlight the impact of regulatory uncertainty on short- and long-term price movements.
