How High Could Litecoin Price Go If a LTC ETF Is Approved?

Litecoin price experienced a huge boost on Oct. 15 after news of a spot Litecoin ETF application by Canary Capital hit the crypto space. LTC price exploded in one huge 8% 30-minute candle and is still in an uptrend.

Litecoin enthusiasts saturated X, taking the opportunity to boast of their early predictions of a Litecoin ETF in 2024. The highest LTC price has ever gone was $410 in May 2021 during the bull run. How high could it go in the 2025 bull run with an ETF behind it?

Litecoin Price If LTC ETF is Approved

LTC price has increased by 6.7% in the last 24 hours and is trading at $71.65. The rest of the crypto market is up 0.2%, possibly because Bitcoin surged late yesterday and breached the $67,000 mark before retracing. The BTC price is currently hovering around $66,986.

The impact of the spot Bitcoin ETF on the underlying asset’s price is clear. BTC price has increased by 47%. Moving the price of a $1 trillion market cap asset is extremely difficult due to the sheer size of the market, requiring a large volume of buying or selling pressure to impact the price noticeably. Therefore, the fact that the ETF was able to achieve such gains is commendable.

Litecoin, on the other hand, is much smaller. BTC rose by 57% to a price of $73,000 shortly after the ETF launch. Assuming Litecoin gets just 30% of BTC’s performance, we can estimate a similar impact on LTC. Litecoin currently has a market cap of $5.383 billion.

According to CoinGecko data, Bitcoin’s market cap is 240 times larger than Litecoins. The 57% upside move for the $1.2 trillion BTC market would be equivalent to a 13,680% increase for a much smaller market cap of only $5.3 billion. If LTC only gets 30% of the 13,680% upside potential, it would place Litecoin price 41X up from the current price of around $2,913 with a $218 billion market cap.

LTC Price Analysis: Aim for $2,900 to Hit $1,500

The Litecoin price chart presents a long-term ascending channel, extending from 2017 to the present and beyond, projecting a potential target of around $1,100 by 2026.

LTC is trading near the lower boundary of this channel for around $71.75, suggesting it is in a support zone. Historically, this has been a good accumulation area, followed by upward price movements. The middle of the channel (~$400) and the upper boundary at $1,100 act as mid-to-long-term resistance zones.

The chart projects a 1,495% gain if the Litecoin price reaches the top of the channel at around $1,100 by 2026. This is the major long-term target, aligning with historical price movements.

The price is at a pivotal support level. If LTC holds above $70, a short-term rally toward $100-$120 is possible, aiming for the middle of the channel. However, if Litecoin fails to hold above $60-$70, it may drop lower and turn bearish, invalidating the current bullish thesis.

Litecoin Can Soar To New ATH

If a Litecoin ETF is approved, LTC could see substantial price gains similar to Bitcoin’s surge post-ETF. If Litecoin achieves just 30% of Bitcoin’s ETF-driven performance, its price could reach up to $2,900, with a market cap of $218 billion. However, for this bullish outlook to hold, LTC must stay above critical support levels around $60-$70. Long-term LTC price forecast targets remain optimistic, with potential milestones of $400, $1,100, and beyond, contingent on market conditions and investor sentiment.

Frequently Asked Questions (FAQs)

The recent surge in Litecoin’s price was driven by news that Canary Capital filed an application for a spot Litecoin ETF, causing LTC to jump 8% in a 30-minute candle.

If a Litecoin ETF is approved, it could generate significant upward price movement similar to the impact of the spot Bitcoin ETF. While Bitcoin saw a 57% price increase following its ETF approval, even a fraction of that impact could send Litecoin’s price much higher due to its smaller market cap.

No, the spot Litecoin ETF by Canary Capital has not yet been approved, but its application is currently under review. Approval could serve as a major catalyst for LTC’s price.

Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/how-high-could-litecoin-price-go-if-a-ltc-etf-is-approved/