Litecoin Trading Activity Increases Over The Past Month – Potential LTC ETF Draws Speculation

Source Newsbtc

Litecoin is on the verge of breaking multi-year highs at the $147 level, defying the overall negative sentiment in the crypto market. While selling pressure and uncertainty have slowed the broader market, LTC has held strong, just below key supply levels. This resilience has fueled optimism among investors, with many anticipating a potential breakout in the coming days.

A crucial factor contributing to Litecoin’s strength is growing speculation around a Litecoin ETF. According to key data from IntoTheBlock, the number of short-term LTC traders has increased by over 12% in the past month. Historically, surges in short-term trading activity have preceded major price movements, indicating that investors are positioning for a potential rally.

With ETF discussions gaining momentum, traders are closely watching Litecoin’s price action. If LTC successfully reclaims $147, it could open the door for a significant breakout. However, failure to push past this resistance could lead to increased volatility. As the crypto market navigates uncertainty, Litecoin remains one of the few assets showing relative strength, keeping investors hopeful for a strong move in the near future.

Litecoin Holds Key Levels As ETF Speculation Grows

Litecoin is trading at crucial liquidity levels after a volatile week, struggling to reclaim momentum following Friday’s market breakdown caused by the Bybit hack, resulting in $1.4 Billion in ETH stolen from the exchange. Just as LTC was preparing to push above multi-year highs, negative sentiment hit the crypto space, leading to a wave of selling pressure across the board. Despite this, analysts remain optimistic, calling for a massive surge in Litecoin once the broader market regains strength. Many believe LTC is positioned to outperform other assets when the market enters its next bullish phase.

Speculation surrounding a Litecoin ETF has added fuel to the growing interest in LTC. According to IntoTheBlock, the number of short-term LTC traders has increased by over 12% in the past month.

LTC Addresses by Time Held | Source: IntoTheBlock on X

This rise in trading activity suggests that traders are closely watching Litecoin, betting on the possibility of an ETF announcement that could drive prices higher. Historically, major ETF approvals have resulted in strong rallies, and investors are speculating that LTC could follow the same pattern.

For now, Litecoin remains in a consolidation phase, with traders looking for confirmation of the next major move. If LTC reclaims key resistance levels and ETF speculation continues to grow, the next breakout could be one of the most significant in recent years.

LTC Testing Key Demand As Market Awaits Breakout

Litecoin is currently trading at $123 after experiencing a sharp 13% drop from local highs set on Friday. The price action reflects broader market uncertainty, but LTC continues to show strength, holding above key support levels. Investors remain optimistic, believing that Litecoin could be one of the top-performing assets once the market trends upward again.

LTC Testing Short-Term Demand Below Multi-Year Highs | Source: LTCUSDT Chart on TradingView

For now, LTC must maintain support above the critical $120 level to sustain its bullish structure. A successful reclaim of the $135 level in the coming days would signal renewed momentum, potentially setting the stage for a breakout into higher price levels. Analysts believe that if Litecoin manages to clear this resistance zone, a strong move toward multi-year highs could follow.

However, if selling pressure increases and LTC loses the $120 support, a deeper retracement into lower demand levels could occur. This scenario would likely extend the consolidation phase, delaying any potential rally. Traders are closely watching Litecoin’s price action for signs of strength, as a bullish breakout could lead to one of the most significant moves for LTC in recent months.

Featured image from Dall-E, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Dogecoin Price Could Reach $1.05 As Early As June – AnalystAfter several weeks of consolidation, Dogecoin has again started to climb, with its price almost doubling in a 30-day timeframe. This sudden rally comes behind a wider inflow into the crypto market, with many bullish indicators now surfacing on Dogecoin’s price chart.
Author  Bitcoinist
May 13, Tue
After several weeks of consolidation, Dogecoin has again started to climb, with its price almost doubling in a 30-day timeframe. This sudden rally comes behind a wider inflow into the crypto market, with many bullish indicators now surfacing on Dogecoin’s price chart.
placeholder
Gold price trades with positive bias below $3,400, multi-week top ahead of US NFPGold price (XAU/USD) attracts some dip-buying during the Asian session on Friday and reverses a part of the previous day's retracement slide from levels just above the $3,400 mark or over a four-week peak.
Author  FXStreet
Jun 06, Fri
Gold price (XAU/USD) attracts some dip-buying during the Asian session on Friday and reverses a part of the previous day's retracement slide from levels just above the $3,400 mark or over a four-week peak.
placeholder
Solana Price Forecast: SOL tests $140 support zone amid rising selling pressureSolana (SOL) edges higher by 2% at press time on Friday as it avoids a drop to the $140 support zone. However, the Solana price trend is approaching its second consecutive bearish week close, following a near 6% drop on Thursday.
Author  FXStreet
Jun 06, Fri
Solana (SOL) edges higher by 2% at press time on Friday as it avoids a drop to the $140 support zone. However, the Solana price trend is approaching its second consecutive bearish week close, following a near 6% drop on Thursday.
goTop
quote