Litecoin (LTC) Price May Jump by 125% to $230, Here Are the Three Main Reasons

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.

Cryptocurrency prices have been in a holding pattern this week as the broader financial markets await key inflation data and cryptocurrency industry sentiment remains edgy.

On Friday, LTC token was trading at $100, which is within the range that it has been in over the past few weeks. Here are three key reasons why the Litecoin coin could rally by 125% to $230.

ETF launch to boost Litecoin price

The first major reason that will push the LTC price higher is the potential launch of a spot ETF later this year. These odds have risen to 81% on Polymarket, indicating that the majority of traders are optimistic that it will launch this year.

The case for a Litecoin ETF is easier to make than for other cryptocurrencies such as Solana and Hedera Hashgraph. The Securities and Exchange Commission (SEC) has already approved spot BTC ETFs, which have seen inflows of over $40 billion since their launch.

Litecoin is a Bitcoin hard fork and a proof of work network, which the SEC classifies as a digital commodity. Therefore, there is no logical reason for the agency to reject a LTC ETF.

However婕s main concern is that while a LTC ETF is likely to be approved, the fund may not attract sufficient inflows. For instance, Ethereum ETFs are yet to cross the $3 billion inflows mark, indicating that fund managers are only interested in Bitcoin.

Solid fundamentals

Like Bitcoin, Litecoin has some strong fundamentals, especially on the supply side. Litecoin’s mining difficulty has continued to rise, thanks to the regular halving event. Halving is a process where block rewards are slashed by half over time, making it harder for miners.

A good number to watch is the hash rate, which measures the health of the network. According to data, Litecoin’s hash rate has surged to a record 2.26k, up from below 800 TH/s in 2023.

Further data indicates that Litecoin miner rewards have been on a steady decline, reaching about 25k in January from over 50k in 2023. This suggests that Litecoin’s inflation has remained significantly lower over the past decade.

Strong technicals for Litecoin price

The weekly chart indicates that the LTC price has some strong technicals that could push it higher in the coming months. It has formed an ascending triangle pattern, which is a well-known bullish continuation indicator. This pattern has an ascending trendline and a horizontal line, which in this case is at $115.

The Litecoin price has formed a bullish flag pattern, which is a continuation indicator. It has also entered the second wave of the Elliot Wave pattern. This second wave is typically bearish and is followed by the third bullish wave. If this pattern plays out, the next key level to watch will be the 50% Fibonacci retracement at $230, which is about 125% up from the current levels.