Litecoin price gained steam on Monday morning, reaching its highest level since March 4 as demand for altcoins surged and hopes for an exchange-traded fund (ETF) approval soared. LTC jumped to a high of $120, up sharply from the April low of $63.
Litecoin Price Technical Analysis
The daily timeframe shows that the LTC price found a bottom at $63.30 in April and has rebounded to a high of $120. This rally accelerated after the token crossed the important resistance point at $106, the highest swing in May, as most altcoins jumped.
Moving above the resistance point at $106.85 was a notable level since it invalidated the highly bearish double-top pattern, whose neckline was at $76.27.
The Litecoin price has remained above the 50-day and 100-day Exponential Moving Averages (EMAs), a sign that bulls are in control. The token also moved above the strong pivot reverse point at $112.5, while the Supertrend indicator has moved to the green zone.
The Relative Strength Index (RSI) and the MACD indicators have pointed upwards, while the ADX has jumped to 28. Notably, the token has become highly overbought, with the RSI rising to 84.
Therefore, the token is likely to experience a brief pullback, potentially to the support level at $106.86, which coincides with the top of the trading range of the Murrey Math Lines. Such a move will be bullish, as it will likely form a break-and-retest pattern.
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Why the LTC Token is Surging
Litecoin price is rising as investors predict that the Securities and Exchange Commission (SEC) will approve a spot LTC ETF by the end of the year. If this happens, the token is likely to attract more inflows from investors, as Bitcoin and Ethereum have demonstrated.
The odds of an LTC ETF approval have remained high due to its similarity to Bitcoin, whose ETFs were approved in January of last year. It is a proof-of-work coin, differing from Bitcoin in its supply limit of 84 million, compared to Bitcoin’s 21 million.
Litecoin price has also jumped because of the ongoing altcoin rally. Data shows that the altcoin season index has jumped to 43 from the recent low of 25. Indeed, most altcoins, such as Ethereum and XRP, have been experiencing a strong bull run this month.
Furthermore, the token has surged due to increasing demand from investors. Its spot volume has jumped to over $2.4 billion, while the futures open interest has rocketed up to a record high of over $850 million.
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