Litecoin (LTC) Price Continues to Consolidate as Investors Await Spot ETF Approval

Litecoin price continues to consolidate at a crucial resistance level as investors wait for the eventual approval of a spot LTC ETF.

Litecoin price is hovering at a crucial resistance level as investors await the eventual approval of a spot LTC ETF by the Securities and Exchange Commission (SEC).

Litecoin price technical outlook: rebound likely

The weekly chart shows that LTC was trading at $127 on Thursday morning. This was inside the range where it has been stuck at since the year started. The coin has also formed an ascending channel and is now close to its upper side. It has also moved slightly above the 50-week Exponential Moving Average (EMA), a sign that bulls are in control.

As the chart shows, Litecoin price has also formed a bullish flag-like chart pattern, a popular continuation sign. It has also moved to the 23.6% Fibonacci Retracement level. Together, these technical indicators suggest that Litecoin just needs a catalyst to push it above the upper side of the chanel. Such a move will confirm a bullish breakout, with the next level to watch being the 38.2% retracement level at $184.15, up by over 45% from the current level.

The bullish LTC price prediction will become invalid if it moves below the key support at $95, which is at the middle level of the ascending channel. Such a drop will point to further downward momentum to $75.

Litecoin price chart via TradingView

LTC ETF odds, falling inflation, whale activity

Litecoin has several catalysts that may push its price higher in the short term. First, there are rising odds that the SEC will approve spot LTC ETs, a move that will lead to more demand. The agency has no reason to reject such an ETF since it has already approved a spot Bitcoin ETF. Litecoin is a Bitcoin hard fork.

Second, as shown below, Litecoin’s inflation rate has dropped to 1.67% as the mining difficulty has jumped. Also, the number of holders has continued rising, possibly as investors anticipate the ETF approval. A combination of high demand and low inflation is a bullish sign for a coin.

Finally, there are signs that Litecoin is seeing whale demand. One whale accumulated LTC tokens worth over $130 million in the past few weeks. Whale transactions are usually bullish because these investors are usually more sophisticated and experienced than the normal day traders.