The popular altcoin Litecoin (LTC) has gained over 11% in value in the last 24 hours, surpassing the $123 level, and is currently trading around $117.10. This rise is influenced by investors turning to major altcoins and expectations for spot ETF approval. Litecoin stands out as one of the coins with the highest weekly gains among the top 100 cryptocurrencies.
Hopes for a spot ETF approval for Litecoin are increasingly rising. The U.S. Securities and Exchange Commission (SEC) has postponed Grayscale's ETF application to October. Bloomberg analysts assess the likelihood of ETF approval at 90%. The probability of approval is strengthened due to the legal advantages provided by the classification of Litecoin as a commodity.
Clarity in regulations is increasing institutional investors' interest in Litecoin. The CFTC's recognition of Litecoin as a commodity has placed it in a similar position to BTC and ETH, thereby reducing the perceived risk for institutional investors. In the event of ETF approval, an acceleration of new capital inflow into the market is expected.
There is also significant growth in Litecoin in terms of commercial use. According to CoinGate data, Litecoin's share in payment volume rose to 14.5% in July. Thus, Litecoin has surpassed major stablecoins like USDT and USDC, becoming the second most used cryptocurrency after Bitcoin. Additionally, MEI Pharma, which develops innovative drugs, diversified its corporate cash reserves by adding $100 million worth of LTC to its portfolio last month.
Technically, Litecoin is also giving positive signals. The price is above the 7-day simple moving average, and the critical pivot point is noted at $117.61. The Relative Strength Index (RSI) is at 69.5, indicating that the bullish potential is still ongoing. The MACD divergence is being monitored for the continuity of momentum. The resistance zone between $124 and $131 is seen as an important threshold for a possible structural breakout.
According to CryptoAppsy data, Litecoin is trading at $122.94 with an increase of 11.82% in the last 24 hours at the time this news was prepared.
