Litecoin Surges on Historic ETF Progress as SEC Reviews First Major Altcoin Application
With a notable rise of around 15% on January 30, 2025, Litecoin (LTC) reached an intraday high of $134 in a major turnabout for the crypto market.
The SEC’s acceptance of Canary Capital’s spot Litecoin ETF application set off the rise, therefore signifying a possible turning point as the first significant altcoin to attain this legal milestone.
SEC to Review Canary Capital’s Litecoin ETF
Two weeks following its first submission on January 16, the SEC’s decision to evaluate Canary Capital’s 19b-4 application marks an unusually quick acknowledgement under the new administration headed by Acting Chair Mark Uyeda. This development points to a perhaps more friendly regulatory climate for investments in cryptocurrencies other than Bitcoin and Ethereum.
The agency has started a public comment session lasting twenty-one days, although the whole review process might last 240 days. Industry commentators including Bloomberg’s ETF experts James Seyffart and Eric Balchunas have emphasized the historical relevance of this being the first cryptocurrency 19b-4 filing to get SEC approval.
Litecoin’s On-Chain Metrics and Whale Activity
Litecoin’s network metrics show impressive activity levels, with 8.4 million total addresses and over 374,000 daily active users as of January 29, surpassing the combined activity of Cardano and Avalanche. However, recent whale movements suggest some profit-taking:
- Addresses holding 10,000-100,000 LTC have sold approximately 230,000 tokens ($30 million) in 24 hours
- Earlier accumulation showed addresses holding 1,000-10,000 LTC added 1.83 million coins since December 2024
LTC/USD Technical Analysis
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Litecoin’s LTC/USD price action has formed a bullish engulfing candle over the previous 11 days, suggesting strong buying pressure. The cryptocurrency is currently developing an inverted Head-and-Shoulders pattern on the daily chart, with key technical indicators pointing to potential further upside:
- The Relative Strength Index (RSI) and Stochastic Oscillator are both above neutral levels
- Price is trading above both 50 and 200-day moving averages
- A symmetrical triangle pattern has formed since December’s high of $146.85
Key price levels to monitor:
- Immediate Resistance: $130-135
- Critical Support: $115.56 (0.382 Fibonacci retracement)
- Secondary Support: $105.90 (0.5 Fibonacci retracement)
- Bullish Target: $186 (on successful breakout)
Technical analysts suggest that a successful break above the $130-135 resistance zone could target the $186 level, representing a potential 30% gain from current prices. However, the $108 level remains crucial support, with any breach potentially invalidating the bullish thesis.
Litecoin’s Future Outlook
The possible acceptance of a Litecoin ETF might establish a standard for other cryptocurrencies looking for like investing platforms. Already signaling increasing institutional interest, several asset managers including Grayscale, Coin Shares, and Monochrome have registered for Litecoin ETFs.
Under Acting Chair Uyeda, the SEC’s more transparent posture—especially with the nomination of crypto-friendly Commissioner Hester Peirce to oversee a new crypto task force—may point to a changing regulatory environment fit for digital asset innovation.
While short-term volatility may persist due to whale selling pressure, the combination of positive regulatory developments, strong network metrics, and favorable technical patterns suggests Litecoin could be positioning for sustained upward momentum, particularly if the ETF application continues to progress favorably through the regulatory process.
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