Recent movements in Litecoin's price have caused significant attention among investors as it faces both challenges and opportunities in the market.
Current Market Situation of Litecoin
Currently, Litecoin is trading at $85.98, which is nearly 20% lower than its peak in May. This price correction is also being observed in other altcoins like Cardano and Chainlink.
Factors Impacting Litecoin's Price
Despite the price drop, the probability of the SEC approving a Litecoin ETF has risen to 76%. The SEC has already approved Bitcoin ETFs, which bodes well for Litecoin. Additionally, the accumulation by large investors, or 'whales', supports interest in LTC. According to Santiment, the number of tokens held by accounts with 100,000 to 1,000,000 LTC has increased from 25.8 million on April 15 to 27.8 million currently.
Technical Analysis of Litecoin
The daily chart indicates that LTC dropped to $63.30 in April and then bounced back to $106.72. However, recently, the price has fallen below the 50-day and 200-day exponential moving averages, signaling a bearish trend. Yet, the formation of a bullish flag on the chart may suggest a potential price rise, with an initial target at $106.7, which is 25% above the current level.
Litecoin is experiencing a challenging period in the market, but potential ETF approval and whale accumulation could positively impact its prices in the future.
