- Litecoin is gearing up for a new bull wave with key bullish signals and key metrics pointing to a breakout.
- Bitcoin’s continued bullish momentum could be key to LTC maintaining its new wave and the possibility of a Litecoin spot ETF.
Litecoin (LTC) looks poised to stage a bullish breakout in the short term. The altcoin is flashing bullish signals with key metrics pointing to a potential upside. One of the key signals highlighted is the recently tested lower boundary of the daily Ichimoku cloud. Typically, this is a bullish signal that is followed by a short-term price rally.
With the altcoin breaking above support and ready to retest key lower resistance levels, its Spent Output Profit Ratio (SOPR) and Adjusted SOPR (aSOPR) values come into focus.
Litecoin is bound by Bitcoin’s movement. The largest cryptocurrency in the world has recently turned bullish and is poised to retest its all-time high of $73,000. With the success of the fourth Bitcoin halving, experts anticipate a rally that ends with BTC reaching a new all-time high.
At the time of press, BTC is trading for $70,011, just $3,000 shy of its all-time high reached a few months ago. As BTC forges higher, it typically drags along the rest of the market with it. Litecoin, regarded as Bitcoin’s little brother could be a major benefactor of this.
Additionally, the potential approval of an Ethereum spot ETF could be pivotal to a majority of cryptocurrencies. Its approval is expected to open the floodgates of most altcoins with Litecoin leading in this aspect. LTC is uniquely positioned as one of the cryptocurrencies outside the scope of the SEC which has been challenging a number of altcoins are unregistered securities.
Charlie Lee, Litecoin’s co-founder, is quite optimistic about the crypto market since the green light was given by the SEC for a Litecoin ETF. Comparing Litecoin with Bitcoin, Lee noted the similarities in their proof-of-work mechanisms and classified Litecoin as a commodity like Bitcoin. Since Bitcoin already has several spot ETFs that trade in the United States, for Lee, Litecoin has a great opportunity to share such an investment vehicle.
LTC Price Outlook
At the time of writing, LTC is trading for $87.21 after a 1.5% rally in the past 24 hours. This sees the altcoin extend its weekly gains by 6% which sees it reach a market cap of a little over $6.4 billion to make it the 19th largest altcoin.
Despite its impressive short-term performance, it is still a long way from its all-time high of $412 reached on May 10th, 2021. LTC holders are optimistic of revisiting this high before the end of the year. In the short term, the digital asset could hold out at $70 support or breakout above $100.
