Litecoin’s (LTC) price has increased by 6.70% today and reclaimed the $70 level for the first time in nearly two months. This notable increase comes after investment firm Canary Capital disclosed that it is pursuing 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 substantial surge. Should Litecoin’s price continue to rise, investor interest may surge. This could also allow long-term holders to unlock profits after months of volatility.
ETF Speculation Lifts Litecoin
Litecoin’s 6.70% price increase today positions it as one of the top gainers out of the top 100 coins. Data from CoinGecko shows it is only behind Dogecoin (DOGE), which has surged by 8% over the last 24 hours.
As mentioned above, Canary Capital’s announcement of its pursuit of a Litecoin ETF with the US SEC is the rally’s driving force. Despite that, on-chain data from IntoTheBlock reveals that a significant portion of Litecoin holders have not yet benefited 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 suggests that these holders are still “underwater,” as the current price of LTC remains below their entry levels.
Read more: Litecoin vs. Ethereum: What’s the Difference?
Until LTC surpasses this level, those who purchased in this range might continue to face selling pressure as they seek to break even. However, if Litecoin’s price continues to climb, these holders may be poised to unlock significant profits. Consequently, this could also Litecoin to break through to $80.14.
Beyond this, Litecoin Open Interest climbed to $243.09 million. OI, as it is commonly called, refers to the sum of the value of open contracts in the market. When it decreases, traders remove liquidity from contracts linked to cryptocurrency.
An increase, on the other hand, indicates a rise in speculative activities with LTC. From a trading perspective, rising OI and price could lead to further price appreciation.
LTC Price Prediction: Free from Bearish Channel
Litecoin has shown impressive price action following the news of the ETF filing, breaking out of its previous descending channel. This breakout signals a potential shift, possibly ending the bearish pressure that had been holding LTC back in the short term.
If this positive momentum continues, Litecoin’s value could see a significant 35% jump that could take it to $95.60. In a more bullish scenario, LTC price could surpass the $100 mark again, rekindling investor confidence and drawing in more buying activity.
Read more: How To Buy Litecoin (LTC) in 4 Easy Steps
However, it’s important to monitor developments surrounding the ETF filing with the SEC. If the chances of approval begin to diminish, LTC could fall back to around $63.40. This scenario would highlight the impact that regulatory uncertainty can have on both short-term and long-term price movements.
Disclaimer
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