Why is Litecoin Price Up 70% As Crypto Market Liquidation Hits $350M

Litecoin price is doing well even as Bitcoin and other altcoins retreat. LTC has risen in the last two consecutive days and is hovering at its highest swing since January 18. It has surged by over 70% from its lowest level this month. Let’s explore why Litecoin is soaring as crypto market liquidations jump to $350 million.

Litecoin Price Defying Gravity as Crypto Market Liquidations Jump

Litecoin price has largely defied gravity as most cryptocurrencies and the altcoin season index drop. It is up by over 70% from its January lows, while Bitcoin has moved into a technical correction after falling by about 10% from its highest level this year. 

CoinGlass data shows that crypto market liquidations jumped to $350 million in the last 24 hours as most tokens slipped. The most affected were coins like Bitcoin, Ethereum, Solana, Dogecoin, and XRP. Over 110,000 customers were liquidated, with the biggest victim losing $7.58 million.

LTC ETF Approval Odds are Rising

The main reason why the LTC price is doing well is that many crypto investors anticipate the Securities and Exchange Commission will approve a spot LTC ETF.  Polymarket data places these odds at 84%, up from 42% in January. That is a sign that the agency will approve funds by Canary Capital, Grayscale, and Coinshares. 

The main reason why the SEC may approve the LTC ETFs is that it has already approved spot Bitcoin ETFs. As Eric Balchunas, the senior ETF analyst at Bloomberg noted, as a Bitcoin fork, the SEC views it as a commodity. He said:

“We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the BTC + ETH combo ETFs, then prob Litecoin (because it’s fork of BTC = commodity).”

LTC Price Technical Analysis: Litecoin Could Blast Off Soon 

The weekly chart shows that the LTC price is staring at a strong bullish breakout ahead of the ETF approval. It formed a small dragonfly doji candlestick pattern two weeks ago. This doji is recognized by a small body and a long lower shadow, and is a popular bullish reversal sign. This explains why it has risen in the last two consecutive weeks. 

Litecoin has jumped above $112.86, the horizontal line of the ascending triangle pattern. This pattern is made of a series of higher highs and higher lows and a strong resistance. More gains are usually confirmed when the coin rises above that resistance.

The value of LTC has moved above the 50-week moving average, which is supporting the bullish momentum. 

Therefore, there are signs that the Litecoin price will surge if bulls clear the key resistance point at $146, its highest point in December. 

Litecoin Token Privce Targets

The most likely scenario is where Litecoin jumps to the 50% Fibonacci Retracement point at $227, up by about 65% above the current level. This view will be confirmed if the coin jumps above $183.6, the 38.2% retracement point. 

On the flip side, a drop below the lower side of the doji candle at $80 will invalidate the bullish Litecoin forecast.

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crispus

Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.

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.