- Litecoin’s price is surging, driven by strong technical support, a four-year high in open interest at $887 million, and growing investor optimism, with a potential ETF approval in 2025 adding to its bullish outlook.
- If LTC surpasses $147.06, it could rally toward the $170 mark, supported by increasing institutional interest and market confidence.
Litecoin (LTC) is making waves in the cryptocurrency market as its price continues to climb, fueled by strong market indicators and investor confidence. This week, LTC has gained over 7%, surpassing the $135 mark. With open interest (OI) reaching a four-year high of $887 million and a promising outlook for a Litecoin Exchange Traded Fund (ETF), analysts predict further bullish momentum. Could Litecoin be on the path to hitting $170?
Strong Technical Support Boosts Confidence
Litecoin recently retested and found solid support at its 200-week Exponential Moving Average (EMA) at $87.45. Additionally, it maintained strength above its key weekly support level at $96.30. These technical levels have provided a strong foundation for the ongoing rally.
LTC’s price bounced from a descending trendline that has been in place since March 2022, pushing the asset upward by 17% in the second week of February. With its current position at $135.52, a push beyond the December 5 high of $147.06 could pave the way for a move toward $170.
Moreover, the Relative Strength Index (RSI) on the weekly chart reads 65, which is above the neutral level of 50 and below the overbought zone. This suggests that there is still room for further price appreciation.
Soaring Open Interest Signals Investor Optimism
One of the strongest indicators of Litecoin’s bullish potential is its open interest. Coinglass data shows that futures OI for LTC has surged from $420.52 million on February 5 to $887.90 million, marking its highest level since May 2021. This spike suggests that new money is flowing into the market, reinforcing the likelihood of a continued rally.
ETF Approval Could Fuel Further Gains
Another major catalyst for Litecoin’s bullish momentum is the potential approval of a Litecoin ETF. According to Bloomberg’s Senior ETF analyst, Eric Balchunas, there is a 90% chance that an LTC ETF could be approved in 2025. If approved, the ETF would make it easier for traditional investors to gain exposure to Litecoin, increasing both liquidity and legitimacy.
The introduction of a Litecoin ETF could drive significant institutional interest, similar to what was seen with Bitcoin ETFs. This could further push LTC prices upward, supporting the case for a climb toward the $170 mark and beyond.
The Road Ahead for Litecoin
With strong technical indicators, surging open interest, and the possibility of an ETF approval, Litecoin’s future looks bright. While short-term fluctuations are inevitable, the overall outlook remains bullish. If LTC manages to close above $147.06, the next major target of $170 could be within reach, potentially setting the stage for even greater gains in the coming months.
