Key Insights:
- Litecoin ETF approval chance soar by 90%, says Bloomberg ETF expert
- Despite this positive development, market sentiment keeps pushing the LTC price to a lower level.
- Recent price action suggests that the LTC price could drop 11% to reach its next support at $76.
The chances of approval for a spot Litecoin Exchange-Traded Fund (ETF) in the United States have soared to 90%, as revealed by Bloomberg’s ETF expert on X (formerly Twitter).
Despite this bullish disclosure, LTC, the native token of Litecoin, remains unchanged.
The current market sentiment isn’t responding to positive developments or announcements, such as the SEC reviewing ETF applications or comments like “Sell off U.S. gold reserves and use the proceeds to buy Bitcoin.”
Over the past weeks, these positive developments seem to be useless, as the market and prices have remained unchanged.
Similarly, the increased chances of Litecoin ETF approval had no impact on LTC’s price; instead, it witnessed a massive decline.
Litecoin (LTC) Technical Analysis and Upcoming Levels
According to technical analysis, LTC appears bearish as it has formed bearish price action on the daily chart.
The chart reveals that the asset has recently broken down its crucial resistance level,
The token had been gaining on this level from an ascending trendline along with strong horizontal support.
This breakdown of key levels in Litecoin potentially confirms that LTC’s price could continue its downward momentum in the coming days.
Litecoin Price Prediction
Based on recent price action, if the LTC price remains below the $87.80 level, it could continue to fall and experience a price drop of over 11%, reaching the $76 level in the coming days.
Meanwhile, LTC has also failed to hold above the 61% Fibonacci golden zone, further supporting this bearish outlook.
Additionally, the asset is trading below the 200 Exponential Moving Average (EMA) on the weekly timeframe, indicating a bearish trend and weakness in price action.
Litecoin (LTC) Current Price Momentum
At the time of writing, LTC was trading near $86.24, recording a modest price surge of over 0.81% in the past 24 hours.
However, during the same period, the asset’s trading volume dropped by 23.93%, suggesting lower participation from traders and investors amid a bearish outlook.
With this bearish market outlook, traders have strongly bet on the downside, as reported by the on-chain analytics firm CoinGlass.
Data reveals that traders are currently over-leveraged at $84.70 on the lower side, where they have built $1.65 Million worth of long positions.
On the other hand, $88.10 is another over-leveraged level, where $6.90 Million worth of short positions have been spotted.
Clearly, weak market sentiment and the recent breakdown have attracted bears.