After a significant crypto crash earlier in the week, Litecoin and a few other tokens resurfaced with a substantial price surge. The LTC token has climbed 15% in the last few hours, showing bullish momentum on the charts, and there are multiple reasons behind that. Let’s discuss this.
Reasons Why Litecoin Price Surges 15% Today
Crypto investors are bullish after the January 29 FOMC meeting. The same reason affected the Litecoin price before the meeting, but it had a positive effect since the contributors announced a halt on interest rate cuts and kept it steady at a range of 4.25% to 4.5%.
Such macroeconomic events align with investor sentiment, boosting the price of digital assets, especially Bitcoin. After the FOMC, the Bitcoin price jumped 3% to $105.3k, triggering parallel gains in the other altcoins, such as LTC, which surged 15% to $125.90 per CoinmarketCap. Interestingly, there are several more reasons behind this LTC price rally.
The Litecoin ETF is in the discussion, where the constant progress and new filings are fueling investor sentiments. Investors are anticipating similar results to those of the Bitcoin ETF, which impacted its price for the good.
Litecoin ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given SEC gave comments on the S-1, litecoin is seen as commodity and there’s new SEC sheriff in town, said Bloomberg analyst Eric Balchunas.
As a result, the daily LTC transactions have exceeded $2.85B, showing increased investor activity. Additionally, more than 122,000 new wallet holders have joined the Litecoin ecosystem in the last few days, per Santiment data, showing increasing confidence in the digital asset.
Recently, the US SEC requested public comments for Canary Capital Litecoin ETF, sparking the holders’ enthusiasm and catering to the price surge. Additionally, the market stats clearly show that most altcoins are being oversold, which has allowed Litecoin to grow. However, the question is whether this growth will continue or become a victim of consolidation.
Key Level For LTC’s Next Move: Price Rally or Downfall
After a 15% surge, Litecoin presently trades at $125.90 and has a market capitalization of $9.5B. Additionally, its trading volume has surged 70% to $1.04B, showing high investor interest. However, despite that, it has a long way to go to reach the prime at $412.96.
The LTC/ USDT chart analysis shows the formation of a rounded bottom pattern, a bullish signal that indicates the possibility of a trend reversal from a downtrend to an uptrend. According to the chart, the key support level forms at $109.06 and $99.36, whereas the key resistance is at $135.94 and $162.12.
A successful uptrend can push the Litecoin price to at least a two-year high of $158.92, followed by $196.34 per Fibonacci extension. However, a drop below $109.06 could trigger a further decline to $99.36.
Overall, the LTC price charts show a bullish outlook, but investors must continuously monitor the key support and resistance levels to make the right decisions.
Bottom Line
The Litecoin price surge clearly reflects investors’ positive outlook, who are showing confidence in the asset amid macroeconomic and technological reasons. Bitcoin’s post-FOMC recovery, SEC’s response to ETF filings, and others are behind today’s uptrend, which could possibly continue due to the altcoin forming a rounded-bottomed pattern. With that, LTC price could achieve new heights at $196.34. However, a failure could result in a drop to $99.36, so investors must do proper research rather in the building FOMO.
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