The cryptocurrency market remained relatively quiet over the past 24 hours, with most major digital assets showing minor losses or consolidation. However, Litecoin (LTC) stood out with a strong rally, gaining more than 10% and emerging as the best performer among the top 100cryptocurrencies.
According to data from CoinMarketCap, the crypto asset traded at $118 at the time of publication, representing an 11% and 22% increase in the past day and week, respectively. LTC also has nearly $9 billion in market capitalization.
Despite all the indicators pointing to a bullish momentum, it remains to be seen whether this rally is the beginning of a bullish trend or if a price pullback is imminent.
Optimism Around a Litecoin ETF
One key driver behind Litecoin's price jump could be the increasing anticipation that the US Securities and Exchange Commission (SEC) may soon approve a spot Litecoin ETF.
The agency recently acknowledged Canary Fund's proposal for such a product, fueling investor optimism. The crypto market is now optimistic that a Litecoin ETF will be approved before the end of 2025. Several market analysts believe Litecoin's price surge could be the start of a larger uptrend.
This development followed Nasdaq's recent filing of 19b-4 forms with the SEC to list CoinShares' XRP and Litecoin ETFs. If approved, these ETFs could provide institutional investors with new ways to gain exposure to Litecoin, potentially boosting liquidity and demand for the asset.
Technical Indicators Signal Possible Pullback
Despite the growing bullish sentiment, LTC could experience a price pullback before any further gains. Litecoin's Relative Strength Index (RSI), a key technical indicator that measures the speed and change of price movements, is currently at 54. Although this is not considered overbought, the indicator has been on a sustained rise since February 4.
An RSI reading above 70 typically indicates that an asset is overvalued and may experience a short-term correction. This suggests that while Litecoin's price may continue to rise, the price could face potential volatility and pullbacks.
The coming weeks will be crucial for Litecoin's price trajectory. If ETF optimism continues to build and market conditions remain favorable, LTC could test higher resistance levels. The immediate price resistance level is 123, and beyond this level, the price could be $130, which was last achieved on January 31.
However, if overbought conditions trigger a correction, investors may look for support around $115 or lower at $98 before another potential rally. With increasing institutional interest and speculation around an ETF, Litecoin remains a cryptocurrency to watch closely.
This article was written by Jared Kirui at www.financemagnates.com.
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