Litecoin price has recovered in the past few months, moving from a low of $63.22 in April to $117 today. Its volume and open interest have soared as investors start to position themselves for the upcoming LTC ETF approval.
Litecoin Price Technical Analysis
The daily timeframe shows that the LTC price has rebounded in the past few months. It has soared by over 86% from its lowest level this year, making it one of the best-performing tokens in crypto.
The coin formed a golden cross pattern on July 20th as the 50-day and 200-day moving averages crossed each other. This pattern often leads to more upside over time. It also remains above the Ichimoku cloud.
Litecoin price has remained above the important support at $106.73, its highest swing in May this year. The coin has remained above the ascending trendline that connects the lowest swings since July 19.
The coin has moved above the strong pivot reverse of the Murrey Math Lines. Therefore, the most likely scenario is where the coin jumps to the extreme overshoot point of the Murrey Math Lines at $137.5, up by 18% above the current level.
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LTC ETF Approval Could be the Catalyst
The ongoing Litecoin price rally happened in a high-volume environment. Its 24-hour volume rose to over $700 million. Similarly, the futures open interest jumped to over $1 billion, its highest point since August 25. It has jumped in the past few consecutive days.
This demand is happening because the Securities and Exchange Commission (SEC) has set a deadline for the LTC ETF approval in October. This will be the final deadline, where the agency must approve or reject.
Odds are high that it will approve them because Litecoin is a Bitcoin hard fork, and it has already approved Bitcoin ETFs. LTC is also a large and highly liquid cryptocurrency.
Therefore, the most likely scenario is where the Litecoin price rises ahead of the ETF approval and then drops afterwards.
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