Litecoin price bounced back this week as the crypto market recovered. LTC jumped to $83.50, its highest since April 5. It has spiked by over 30% from its lowest level this month. This article explores what to expect ahead of the LTC ETF approval.
Litecoin Price Technical Analysis: Megaphone Forms
The weekly chart indicates that the LTC price rebounded after reaching a low of $61.3 earlier this month. This was an important support level as it coincided with the ascending trendline connecting the lowest swings since June 2022. It has failed to move below that level at least four times since then.
Litecoin has formed a giant megaphone pattern, a popular bullish sign. This pattern comprises two rising and broadening trendlines. The upper side connects the highest swings since January 2023.
Therefore, this pattern implies that the Litecoin price could experience a bullish breakout in the coming weeks. If this happens, the next price to watch will be at $142, near the upper side of the megaphone. This price is about 71% above the current level.
The risk, however, is that if the coin remains below the 50-week moving average, it may face a bearish breakdown. A drop below the lower side of the wedge will invalidate the bullish outlook and lead to more downside. The next key price to watch in this case will be at $50, the lowest swing on August 5.
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LTC ETF Hopes Remain
The main catalyst driving the Litecoin price action is the rising hopes that the Securities and Exchange Commission (SEC) will approve a spot LTC ETF later this year. CoinShares, Grayscale, and Canary Capital are the only three firms that have applied for a spot LTC ETF.
Litecoin, being a Bitcoin hard fork, means that the SEC will ultimately not have an issue approving its ETFs. In the past, the fund has been hesitant to approve ETFs of coins like Solana, which it sees as a security.
PolyMarket odds for ETF approval remain at 70%, indicating most participants expect it. The challenge, however, is that the fund may not attract sufficient inflows upon listing, as Litecoin has not garnered significant investor attention.
Litecoin may also benefit from accumulation. IntoTheBlock data shows that addresses that have held Litecoin for over five years have continued growing, implying accumulation, which could lead to more gains over time.
This chart shows $LTC belonging to long-term holders based on UTXOs.
— IntoTheBlock (@intotheblock) April 24, 2025
These long-term Litecoin holders display distinct patterns across market cycles.
The red boxes mark wallets that accumulated in the previous bull run and have been holding for 3 to 5 years. They tend to sell… pic.twitter.com/KTU64nZPA7
Broadly, on a macro level, the coin is likely to benefit from the upcoming crypto market bull run. This run will be confirmed if Bitcoin crosses the important resistance level at $100,000 and continues to surge.
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