Litecoin (LTC) price rose 6.70% today, recovering the $70 level for the first time in almost two months. This notable increase comes after investment firm Canary Capital revealed that it is moving forward with the introduction of a Litecoin exchange-traded fund (ETF) with the SEC.
With the ETF filing acting as a catalyst, this on-chain analysis highlights how Litecoin’s price could experience a significant rally. If Litecoin’s price continues to rise, investor interest could increase. This could also allow long-term holders to reap profits after months of volatility.
Litecoin rises due to ETF speculation
Litecoin’s 6.70% price increase today positions it as one of the most appreciated coins among the top 100 coins. Data from CoinGecko shows it is just behind Dogecoin (DOGE), which has surged 8% in the past 24 hours.
As mentioned above, the rally was driven by Canary Capital’s announcement to pursue a Litecoin ETF with the US SEC. Nevertheless, IntoTheBlock’s on-chain data 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) indicator, approximately 840,000 LTC addresses purchased the coin between $71.54 and $81.14. This suggests that these holders are still “below the surface” as the current price of LTC remains below the entry level.
Read more: Litecoin and Ethereum: What’s the difference?
Litecoin IOMAP. Source: Into the Block
Until LTC rises above this level, those who bought in this range are likely to remain under selling pressure to breakeven. However, if Litecoin’s price continues to rise, these holders could be poised to reap big profits. As a result, Litecoin may also break above $80.14.
Beyond this, Litecoin open interest rose to $243.09 million. OI, as it is commonly called, refers to the total value of open contracts in the market. When it decreases, traders remove liquidity from contracts related to cryptocurrencies.
On the other hand, the increase indicates an increase in speculative activity by LTC. From a trading perspective, rising OI and prices can lead to further price increases.
Litecoin open interest. Source: Santiment
LTC Price Prediction: Free from Bearish Channel
Litecoin showed impressive price action following the news of the ETF filing, breaking out of the previous descending channel. This breakout signals a potential change and could end the bearish pressure holding LTC back in the short term.
If this positive momentum continues, Litecoin’s value could rise significantly by 35% and reach $95.60. In a more bullish scenario, LTC price could once again cross the $100 mark, reigniting investor confidence and attracting further buying activity.
Read More: How to Buy Litecoin (LTC) in 4 Easy Steps
Litecoin daily price analysis. Source: TradingView
However, it is important to monitor developments surrounding ETF filings with the SEC. LTC could move back towards the $63.40 area if the chances of approval start to decrease. This scenario will highlight the impact that regulatory uncertainty can have on short- and long-term price movements.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although BeInCrypto strives for accurate and unbiased reporting, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms of Use, Privacy Policy and Disclaimer have been updated.
