Whales Are Loading Up on Litecoin: Is a $150 Surge Inevitable?

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As I observe Bitcoin hovering near $100,000, Litecoin (LTC) appears to be offering a promising breakout trading opportunity. The potential approval of a Litecoin ETF seems to be stoking optimism in the wider crypto market, contributing to the positive momentum.

Over the past 24 hours, I’ve witnessed a significant 16% increase in the value of Litecoin, pushing its market capitalization towards the $9 billion threshold. The question on my mind is: Will this upward trend for Litecoin continue, as it currently ranks among the top performers over the same period?

Litecoin (LTC) Breaks Local Resistance, Jumps 16%

According to yesterday’s analysis, Litecoin saw a series of three successive bullish candles in its daily chart. The significant bullish engulfing candle, which amounted to a 14.23% increase, helped Litecoin surpass the local resistance trendline.

Additionally, it surpasses the 23.60% Fibonacci level of approximately $114.38. Following its bounce from the $100 psychological resistance point, the upward trend in LTC’s price can also be seen as a breakout from a descending triangle pattern.

In simpler terms, a series of rising prices (bullish candles) has climbed above its previous peak and is now targeting the 38.20% Fibonacci point at approximately $125. The positive market conditions have been strengthening the daily Relative Strength Index (RSI) line for Litecoin ETFs.

Additionally, the upward trend in the 20-Exponential Moving Average suggests it might intersect positively with the 50-Exponential Moving Average. This could mean that the technical indicators are signaling a potential buy opportunity for Litecoin (LTC).

Using Fibonacci retracement levels, the bullish Litecoin (LTC) price movement suggests a possible break above the psychological barrier of $150. Subsequent price objectives could be found at the 78.60% and 100% Fibonacci levels, which are approximately $155.71 and $171 respectively.

Conversely, if the resistance trend line breaks again, it could lead us to the Fibonacci level at approximately $110.

Litecoin Attracts Whales & Sharks

Based on the ongoing bullish trend and triangle breakout of LTC prices, it appears that investors are gearing up to purchase even more Litecoins. Over the past six days, wallets holding over 10,000 LTC have amassed approximately 250,000 tokens.

The significant purchase activity seen by ‘whale’ and ‘shark’ investors suggests a rising level of certainty, given the discussions about potential approval of the Litecoin Exchange-Traded Fund (ETF).

Litecoin ETF: The Next Bullish Catalyst

As a researcher delving into the world of cryptocurrencies, I’m keenly observing the developments surrounding Canary Capital’s amendment to the S-1 filing for a potential Litecoin ETF. While there seems to be a wave of optimism about this move, it’s important to note that, as of now, Canary Capital has not yet filed the crucial 19B-4 document with the Securities and Exchange Commission (SEC). This step is crucial in the ETF approval process, so I’ll be keeping a close eye on any updates regarding this filing.

According to a recent analysis by Bloomberg Senior ETF Analyst Eric Belchun, there’s a possibility that the U.S. Securities and Exchange Commission (SEC) might greenlight Litecoin as the next exchange-traded fund (ETF). Key points he emphasized include:

“Litecoin is most likely to be the next coin approved”

On the contrary, the analyst offers an opposing viewpoint by emphasizing the impending change in the U.S. SEC Chairmanship. Nevertheless, this development has fueled speculation about the potential approval of a Litecoin ETF, leading to increased buying interest.

The strong upward trend in Litecoin could take it past the $150 mark due to whale purchases and ETF enthusiasm. Yet, it’s important to note that a dip back down to around $110 might occur before this continues. Keep an eye on significant Fibonacci levels for traders as they unfold.

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2025-01-16 17:28