Litecoin moved in favor of Fidelity Digital after being added to the portfolio Update could impact LTC price movement in the short term
Litecoin has been overshadowed by popular coins such as Ethereum and Bitcoin, and this is evident from its recent performance. But Fidelity Digital’s latest move could soon change that fate.
Litecoin confirmed on Friday that Fidelity Digital has added LTC to its portfolio of digital products. This is a significant development that will allow Fidelity customers in the US to gain exposure to Litecoin. This includes institutional investors. The company currently manages more than $12 trillion in assets.
The addition of Litecoin to Fidelity Digital’s portfolio confirms its optimism about the future of cryptocurrencies.
Paving the way for a Litecoin ETF?
Fidelity Digital’s addition of LTC to its portfolio has increased speculation about the possibility of a future Litecoin ETF. Bitcoin ETFs have seen billions of dollars flowing into them, and an ETH ETF was recently approved as well.
Litecoin meets similar asset criteria to BTC, including scarcity and a proof-of-work consensus algorithm. However, it is worth pointing out that Fidelity Digital did not hint at the possibility of a Litecoin ETF in the near future.
In any case, if strong demand from institutional investors returns, the spotlight on cryptocurrencies could be a stepping stone in that direction.
Will Litecoin regain the $100 price level?
LTC was able to temporarily exceed $100 in March 2024. After peaking at $112.83 in early April, it recorded a 49% discount and bottomed out at $56.62.
At the time of writing, the cryptocurrency was trading at $73.33.
Source: TradingView
Simply put, LTC has some ground to cover before breaking above the phantom $100 price level.
Still, both the RSI and MACD indicators confirmed the bullish momentum. But can this momentum be maintained? According to the latest long and short data, shorts decreased by 145,540 and the number of net longs was 44,055.
Source: HyblockCapital
A decrease in the number of shorts indicates a change in sentiment. However, at the time of writing, it was not immediately clear whether this had anything to do with Fidelity Digital’s announcement to add LTC to its portfolio.
Hashrate rises to 3-month high
Litecoin’s hashrate has also recorded a notable spike over the past two days, resulting in a three-month high of 1.179 PH/s. This rally brings the chart closer to its highest point in six months.
Source: CoinWarz
The aforementioned spike is in line with the observed change in market sentiment and increase in Litecoin trading, especially when the market settled into a bullish mood.
All these observations suggest that Litecoin has a chance for a bullish recovery. However, whether we can push back above the $100 level in the short term depends on the level of demand that exists in the market.
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