Litecoin (LTC) Price Surges 15% to $125.90 as ETF Approval Speculation Grows

Litecoin (LTC) demonstrated strong market performance on January 30, 2025, with prices climbing 15% to reach $125.90. The uptick comes as the broader cryptocurrency market responds positively to recent Federal Reserve decisions and growing speculation about potential Litecoin ETF approvals.

Litecoin (LTC) price soared 15% on Monday evening as the broader cryptocurrency market reacted to recent Federal Reserve decisions and speculation about potential Litecoin ETF approval.

The price of Litecoin reached $125.90 at 21:34 EST, according to TradingView. At the time, the cryptocurrency had a 24-hour trading volume of $700.9 million, which marked a 70% increase and brought the total market cap to $9.5 billion, as reported by CoinMarketCap.

The Federal Open Market Committee (FOMC) meeting on Wednesday, Jan. 29, appeared to be a key factor in the market movement. During the meeting, the committee decided to keep interest rates in a range between 4.25% and 4.50%.

This decision, which was largely anticipated by markets, helped propel Bitcoin’s price to $105,300 at the time. The cryptocurrency’s price surged throughout the week following a period of relative stagnation in January.

As Bitcoin’s price recovered from recent lows, it appeared to have a positive impact on the broader altcoin market, including Litecoin.

Data showed that Litecoin activity surged as daily transactions reached $2.85 billion at the time of writing. The network attracted substantial new interest, with Santiment data revealing the creation of more than 122,000 new wallet addresses in recent days.

According to market participants, the Securities and Exchange Commission’s request for public comments regarding the Canary Capital Litecoin ETF sparked fresh optimism among investors.

"Litecoin ETF now has all the boxes checked," Bloomberg analyst Eric Balchunas said. "The first alt coin ETF of 2025 is about to be on the clock."

The development came after the approval of the VanEck First Bitcoin ETF (NYSE: BITO) in October 2021, which was a historic event for the cryptocurrency market.

However, it's worth noting that the approval of an ETF does not guarantee immediate market gains. Various factors, including market conditions, institutional interest and broader economic trends, can influence the price movement following an ETF approval.

As the dust settled on the recent market rally, traders were keeping a close eye on key technical levels for Litecoin.

Technical analysis of Litecoin price highlighted the formation of a rounded bottom pattern on the LTC/USDT chart, which often suggests a potential trend reversal.

The price of Litecoin encountered crucial support at $109.06 and $99.36, while facing resistance at $135.94 and $162.12. A breakout from either side of these levels could determine the next price direction.

The cryptocurrency's price movement also attracted the attention of institutional investors, who were closely monitoring the ETF developments.

According to market observers, there were similarities in the price action observed during the Bitcoin ETF approval process. Several analysts noted that the market took a "rocky staircase up" during that period.

Data from on-chain metrics showed increased holder accumulation, where long-term holders maintained their positions despite recent market volatility.

The growth in new addresses suggested broader market participation and potential network adoption. A sustained increase in addresses could indicate growing interest in Litecoin.

Trading patterns throughout the day revealed strong buying pressure at current levels, with order books displaying substantial support around the $109 price zone.

The 24-hour price range showed a steady upward movement with minimal retracements, indicating a sustained buying trend.

In response to the increased volume, market makers adjusted their positions, leading to tighter spreads and improved liquidity conditions for LTC trading pairs across major exchanges.

Fib extension levels, a technical analysis tool, projected potential targets at $158.92 and $196.34, should the current upward momentum continue.

However, traders noted the importance of maintaining support above $109.06 to prevent a decline toward $99.36.

Recent exchange data indicated a decrease in selling pressure from miners, who typically represented a steady source of market supply. This reduction in miner selling coincided with the broader market recovery.

The options market showed increased activity, where traders were positioning for potential upside moves. Several traders acquired call options at varying strike prices above current levels.

Price action across different time frames, such as the daily and 4-hour charts, showed strengthening momentum indicators. Multiple technical indicators, including the MACD and RSI, displayed positive divergences on these charts.

Finally, an analysis of the market structure revealed the formation of higher lows since the recent bottom at $85.82 on January 24. This market structure suggested a potential shift in the medium-term trend direction.