Litecoin Price Surges, ETF Approval to Spark a Rally to $128?

Litecoin (LTC) price displayed a significant upward movement in the last 24hrs. Market analysts and investors focus on the rising LTC price as they anticipate a possible approval for its exchange-traded fund (ETF).

Additionally, the rising investor sentiment stems from Binance increased support for Litecoin while the market continues its upward trend.

ETF Speculation and Litecoin Price Surge

Notably, Litecoin price has recently surged in the wake of increasing talk about the prospects of an ETF backed by Litecoin. Analysts have pointed to the $96 support level as a key factor in the coin’s recovery. LTC price bounced off this range and began trading in an ascending triangle pattern.

Carl Moon, a top market analyst, has come out to reaffirm his long-term bullish outlook of LTC, given the current trend and the potential ETF boost. According to Moon, Litecoin price could break through the current levels and reach a target of $128.

LTC price is currently valued at $113.65 and has experienced a 9% increase from the previous day with a high and low for the day being $102-$113. The price above the $96 mark strengthens the bullish outlook for Litecoin for the short-term.

Binance’s Support for Litecoin and Increased Market Optimism

Besides the ETF speculation, the recent decision by Binance to extend its support to Litecoin has given a positive signal to the Litecoin token. The exchange also launched Spot Grid and Spot DCA services for LTC/USDC on 6th February. These enhancements will provide more tools to manage their positions, leading to an increase in Litecoin liquidity.

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Additionally, the support from Binance is crucial as it shows that institution interest is rising. This makes Binance an important player within the token’s ecosystem, as it broadens its services related to LTC. Such a move could attract more capital to Litecoin, which might cause a price spike depending on the overall market trend.

Litecoin Futures and Derivatives Market Activity

More so, another indication of the rising optimism surrounding Litecoin is the growth in the futures open interest and the derivatives market. Coinglass data revealed that LTC futures open interest increased by 11% to equal $551.13 million, implying that more institutional investors are interested in Litecoin.

Furthermore, the derivatives market also posted a huge increase of 169%, to $ 1.29 billion. This trend suggests that more traders are entering the market to profit from Litecoin price rise adding more weight to the $128 target.

Hence, the rise in derivatives market activity is a strong signal of investor confidence in Litecoin price trajectory. With an uptick in open interest and volume, there is growing anticipation that LTC could break through key resistance levels and make a significant move upward.

Moreover, a recent report highlighted that Litecoin growing hashrate, and increasing institutional accumulation are fueling bullish momentum. With Grayscale’s LTC holdings surging from 1.4M to 2.1M in under a year, institutional confidence in Litecoin continues to strengthen. The rising hashrate, now at an all-time high of 2.24 PH/s, signals enhanced network security and miner trust.