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- Litecoin ETF approval is gaining momentum, with high chances of SEC approval.
- Price is holding above key support levels, with $100 as the next target.
- Canary Capital’s ETF proposal is seen as a frontrunner, with institutional appeal.
Litecoin (LTC) is showing a slight upward movement during the Asian session on Monday. This modest price action comes as the broader cryptocurrency market consolidates after a strong recovery in April. However, the buzz surrounding Litecoin’s potential ETF approval is driving significant attention, signaling a potential breakout in the coming weeks.
According to Bloomberg ETF analyst James Seyffart, the spot Litecoin Exchange-Traded Fund (ETF) proposal by Canary Capital has a higher likelihood of SEC approval than other major crypto assets. This marks a significant development for Litecoin, with the SEC’s decision on the ETF filing expected soon. Unlike other major assets like Dogecoin and XRP, whose ETF proposals have faced delays, the SEC has not postponed the Litecoin ETF review, fueling optimism among investors.
Seyffart believes that Litecoin is the most likely crypto asset to receive approval for an ETF in the near term. However, he acknowledges that the SEC may still extend the review period. If approved, this ETF would provide a much-needed boost to Litecoin’s institutional appeal, potentially attracting new capital inflows.
Timeline of Canary Capital’s Litecoin ETF Filing
The process for securing Litecoin’s ETF began with Canary Capital’s S-1 registration filing on October 15, 2024. This was followed by the 19b-4 filing submitted by Nasdaq on January 16, 2025, signaling that the regulatory review was underway. Analysts expect the SEC to make a decision soon, with Litecoin being considered the frontrunner among crypto ETF proposals.
Currently, three major Litecoin ETF proposals are under review, with Canary Capital leading the pack. Other contenders include Grayscale and CoinShares, both of which are also hoping for approval. Bloomberg analysts have given Litecoin a remarkable 90% chance of receiving approval, making it a prime candidate in the ongoing ETF race.
Looking at Litecoin’s price action, the cryptocurrency is holding above critical support levels, including the 4-hour 100 Exponential Moving Average (EMA) and the 200-day EMA, both of which are around the $84 mark. This strong support base could help LTC maintain its bullish trajectory.
For Litecoin to break above $100, it will need to clear resistance at the $88–$90 range, which has historically acted as a significant supply zone. A move above the 50 EMA and an ascending trendline would also create a bullish setup, pushing Litecoin closer to its psychological target of $100.
The Relative Strength Index (RSI) will be a key indicator to watch for signs of a trend reversal. If the RSI recovers above the 50 midline, it would signal increasing buying pressure and reinforce Litecoin’s potential for a rally towards $100.
The Impact of Macroeconomic Factors on Litecoin
The broader macroeconomic landscape could also influence Litecoin’s performance this week. The Federal Reserve is set to announce its interest rate decision, and market expectations are divided. While former U.S. President Donald Trump has called for rate cuts to stimulate economic growth, persistent inflation and trade tensions with China could complicate the Fed’s decision-making.
In April, Fed Chair Jerome Powell acknowledged that the central bank may face challenges in balancing its dual mandate of low inflation and low unemployment, which could result in a more hawkish stance. This uncertainty could have a ripple effect on the cryptocurrency market, adding another layer of complexity for Litecoin’s price action.
Despite the ongoing macroeconomic challenges, Litecoin remains in a strong position for further upside. Traders should watch for support above the 50-day EMA and the ascending trendline, which would signal increased risk-on sentiment and the potential for further price increases.
On the downside, Litecoin’s next key demand zones are located at $81 and $75, which could serve as buying opportunities if the price experiences a pullback.
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