Litecoin (LTC) surged 7.69% to $71.45, driven by excitement over a potential spot ETF. Canary Capital has applied for a Spot Litecoin ETF with the aim of promoting market participation by institutional investors. Analysts are expecting a bullish cycle for LTC, with price targets potentially reaching $200-$300 over the long term.
The tide may be turning for Litecoin (LTC) as the price of the digital currency has increased significantly over the past 24 hours. Fueled by growing excitement around asset manager Canary Capital’s potential Spot Litecoin exchange-traded fund (ETF) filing, LTC soared approximately 7.69% to reach approximately $71.45 on October 16th. .
According to an S-1 filing filed on Oct. 15, the asset manager has filed a document with U.S. regulators seeking approval for the Spotlight Coin ETF. This proposed ETF aims to directly hold Litecoin, mirroring the performance of the CoinDesk Litecoin Price Index (LTX).
The potential arrival of the Spot Litecoin ETF could be a game-changer for institutional investors. By offering a more direct public option, ETFs could pave the way for increased institutional involvement in the Litecoin market, further increasing the legitimacy of the cryptocurrency.
Analysts are bullish on Litecoin’s future
News of the potential ETF sparked a wave of optimism, especially among cryptocurrency analysts who view the current position as underperforming. While the broader crypto market has declined by approximately 15%, LTC continues to decline significantly, remaining more than 80% below its all-time high of approximately $413.65 set in May 2021. I am doing it.
Several analysts see the potential ETF as the catalyst for a new bullish cycle in cryptocurrencies. Analyst 28 Crypto believes that the ETF could trigger significant price increases coupled with a bullish technical scenario on the LTC/USD monthly chart. The chart suggests that LTC has been trading within an ascending parallel channel for several years, a historical indicator that often precedes a breakout.
28 Crypto highlights the possibility of a long-term Fibonacci extension target above $2,000 and a surge towards the $200-$300 range.
Source: 28 Crypto
Investment analysts have adopted a bullish view, suggesting that LTC’s current trading range represents a prime ‘buy the dip’ opportunity. He argues that the price is likely to head towards the June resistance target of around $88, potentially providing investors with a solid long-term entry point.
Trader’s position on price rise
Positive sentiment for Canary Capital’s ETF filing has exceeded analysts’ expectations. Open interest in the Litecoin futures market rose to its highest level in three months, reaching $258.94 million on October 16th, compared to $232 million the previous day. This significant increase in open interest indicates that traders are bracing for further price increases, and is a strong indicator of bullish momentum.
Source: Coinglass
Additionally, the market’s favorable funding rate is currently 0.262% per week, suggesting that traders are willing to pay a premium to maintain long positions in LTC. This strengthens the uptrend and reflects growing confidence in the future of cryptocurrencies.
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