Litecoin price has moved sideways this week as cryptocurrencies the sentiment in the crypto industry remained on edge. LTC token was trading at $100 on Friday, near the range it has been in the past few weeks. Here are the three main reasons why the Litecoin coin may jump by 125% to $230.
Litecoin price helped by ETF launch
The first main reason that will push the LTC price higher is the potential spot ETF launch later this year. According to Polymarket, these odds have jumped to 81%, a sign that most traders are optimistic that it will launch this year.
The case for a Litecoin ETF is easy to make compared to other cryptocurrencies like Solana and Hedera Hashgraph. The Securities and Exchange Commission (SEC) has already approved spot BTC ETFs, which have accumulated over $40 billion in inflows since inception.
Litecoin is a Bitcoin hard fork and is a proof of work network, meaning that the SEC sees it as a digital commodity. As such, there is no logical reason for the agency to deny a LTC ETF.
Still, the main concern is that, while a LTC ETF approval is likely, the fund may not attract enough inflows. For example, Ethereum ETFs are struggling to break the $3 billion inflows mark, meaning that fund managers are only interested in Bitcoin.
Read more: “It’s Just Beginning:” Expert Predicts the Next Litecoin Price Moves
Solid fundamentals
Litecoin, like Bitcoin, has some solid fundamentals, especially on the supply side. Litecoin’s mining difficulty has continued rising, helped by the regular halving event. Halving is a process where block rewards are slashed by half over time, making it difficult for miners.
A good number to consider is known as the hash rate, which measures the health of the network. Data shows that Litecoin’s hash rate has jumped to a record high of 2.26k, a big increase from below 800 TH/s in 2023.
More data shows that Litecoin miner rewards have been in a steady decline, moving to about 25,000 in January from over 50k in 2023. That is a sign that Litecoin’s inflation has remained significantly lower in the past decade.
Litecoin price has strong technicals
LTC price chart by TradingView
The weekly chart shows that the LTC price has some strong technicals that may push it higher in the coming months. It has formed an ascending triangle pattern, a popular bullish continuation sign. This pattern has an ascending trendline and a horizontal line, which, in this case is at $115.
Litecoin price has formed a bullish flag pattern, a popular continuation sign. Also, it has now moved into the second phase of the Elliot Wave pattern. This second wave is usually bearish and is followed by the third bullish one. If this pattern works, the next key level to watch wil be at the 50% retracement point at $230, ebout 125% from the current level.
