- Litecoin ETF reports can increase the institutional interest rate, which may stimulate the price than its resistance to $ 130
- Falling transactions and address activity emphasized consolidation, while ETF goods inspection could accommodate again
Grayscale Investments and Coinshares have submitted applications to the US Securities and Exchange Commission (SEC) to launch Litecoin ETFs.
According to Nate Geraci, president of the ETF store, Grayscale submitted A 19B-4 form to mention its grayscale Litecoin Trust as an ETF. In addition, Coinshares submitted An S-1 form to propose its Litecoin ETF offer.
These requests follow an earlier entry by Canary Capital, which means that Grayscale and Coinshares are the second and third asset managers to request approval for a Litecoin ETF.
This marks a continuation of greater interest in crypto-related ETFs, where optimism grows under the current SEC administration for possible approvals.
Litecoin’s price and market activity
Litecoin (LTC) was traded on $ 122.05 At the time of the press after a price increase of 4.47% in the last 24 hours. This, despite losing 2.63% of its value in the past week. With a circulating range of 75 million LTC, the market capitalization of Litecoin was around $ 9.22 billion.
At the 4-hour graph, the price of Litecoin seemed to consolidate within the Bollinger tires, with immediate resistance to $ 130 and in the short term for $ 117.11. The lower band represented a critical downward level in the event of Bearish activity at $ 111.25.
On the graph the MACD indicator flashed a bullish crossover, with the MacD line that crosses above the signal line.
This hinted that the bullish momentum is increasing, although reducing histogram sizes emphasized the need for a stronger buying pressure to push the price higher.
Correlation between transactions and price movements
Data of Intotheblock unveiled A strong relationship between major transactions and price movements. In fact, large transactions peaked at 4.93k on January 18, 2025, corresponding to the price trade near the $ 140 level on the charts.
Source: Intotheblock
However, the number of large transactions fell to 3.43k – which indicates a reduced market activity, since Litecoin was consolidated above $ 120.
Such a decrease in large transactions seemed to adjust to a decrease in address activity. In fact, new addresses fell by 7.43%in the past 7 days, the active addresses fell by 9.36%and zero balance addresses fell by 11.15%.
This finding referred to a lower network participation, which may possibly signal a reduced speculative interest during this consolidation phase.
Source: Intotheblock
Potential impact on the price of Litecoin
Submitting Litecoin ETFs by large asset managers such as Grayscale and Coinshares could Boost the market sentiment For Litecoin. If approved, these ETFs can provide more institutional investments and liquidity. Such approval can support higher price levels.
With technical indicators that indicate resistance to $ 130 and support for $ 117.11, an outbreak or breakdown will probably determine the short -term direction of Litecoin.
An increase in the participation of institutional investors after ETF approval can increase the price to its previous peaks of $ 140 or higher.
Credit : ambcrypto.com
