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Highlights
- Litecoin price could be headed for a parabolic rally to $5,000 after breaking out of a symmetrical triangle pattern.
- The growing optimism around the potential approval of a Litecoin ETF in 2025 is also driving the bullish momentum.
- Litecoin's open interest has surged to $869M, marking its highest level since May 2021.
Litecoin price is set for a potential breakout to $5,000 after the US Securities and Exchange Commission (SEC) acknowledged CoinShares’ filing for a spot Litecoin exchange-traded fund (ETF). Bloomberg analysts previously gave a 90% chance of the ETF getting approved in 2025, citing Litecoin’s non-security status.
Litecoin trades at $129 on Wednesday after a notable 4% dip in 24 hours. With the SEC acknowledging CoinShares Litecoin ETF filing, will this development spark a bullish rally to $5,000?
SEC Acknowledges LTC ETF Filing: Is a Litecoin Price Breakout Imminent?
On Wednesday, the SEC acknowledged a filing by the Nasdaq stock exchange to trade shares of a Litecoin ETF that would be offered by CoinShares. The regulator stated that it was soliciting public comments following the rule changes proposed by Nasdaq when it submitted its 19b-4 filing to list the ETF.
The recent filing brings the ETF closer to approval. The optimism around this product was fuelled by ETF analysts James Seyffart and Eric Balchunas who stated that Litecoin is likely to become the second altcoin ETF to launch in the US due to its non-security status.
If approved, this product will allow institutional investors to gain exposure to Litecoin without having to hold LTC. This will help drive the altcoin’s adoption on Wall Street as has been the case with Bitcoin and Ethereum.
The launch of this ETF will also bode well for Litecoin price, which is 68% below its all-time highs. Per analysts, the approval could result in a nearly 40x price rally to $5,000. Whales seem to be positioning themselves for this eventuality after accumulating $512M LTC in the last two weeks.
Analyst Maps LTC Price Path to $5,000
A massive Litecoin bull rally could be underway, leading to a major breakout past $5,000. This is according to analyst Crypto Surf, who noted that Litecoin price has formed a symmetrical triangle pattern on the six-month chart.
A symmetrical triangle pattern forms during price consolidation. After years of sideways trading, Litecoin has broken above resistance at the upper trendline, suggesting a bullish continuation. If this plays out, LTC price is likely poised to rally by nearly 40x to $5,000.
If Litecoin hits this price, it would have a $377 billion market capitalization given its current circulating supply of 75.54M LTC.
Another analyst, Professor Moriarty, noted that Litecoin price appears to have formed a bull flag and flipped resistance on its daily chart, signaling bullish momentum. If LTC continues to hold levels above this resistance, it could lead to a move toward $218.
A Litecoin rally to $5,000 is likely if a spot ETF is approved. However, this rally is also contingent on the altcoin attracting high inflows and outperforming Ethereum ETFs, which have witnessed sluggish performance since their launch.
Litecoin Open Interest Approaches 4-Year High
As the long-term Litecoin price forecast highlights a possible rally to $5,000, the short-term sentiment remains significantly bullish. This follows a surge in LTC’s open interest (OI) to its highest level since May 2021 according to Coinglass.
On February 20, 2025, Litecoin’s OI surged to $869M as the price hit a monthly high. When the open interest rises alongside the price, it indicates bullish momentum. Moreover, going by past trends, a surge in Litecoin OI tends to follow a price increase.
Frequently Asked Questions (FAQs)
1. Can Litecoin price rally to $5000?
2. Will the SEC approve a Litecoin ETF in 2025?
3. What does Litecoin's rising open interest show?
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