Litecoin price has risen for the third day in a row, reaching an almost one-month high.
Litecoin (LTC) price has risen 26% from this week’s lows to $126. It was the second best performing coin after XDC Network (XDC).
Litecoin's surge is primarily due to rising expectations that the Securities and Exchange Commission will approve Canary Capital's Spot LTC ETF.
Eric Balciunas, senior ETF analyst at Bloomberg, said in a post on X that the SEC sent comments to Canary. These comments suggest that authorities may eventually approve the fund.
Litecoin, a fork of Bitcoin, has a higher chance of approval compared to other projects such as Hedera Hashgraph (HBAR) and Solana. HBAR and Solana are both proof-of-stake networks with staking capabilities, which the SEC often considers to be unregistered securities.
A Polymarket poll of nearly $10,000 in assets showed the probability of spot LTC ETF approval rose to 60% from this week's low of 40%.
Analysts remain optimistic that the SEC under Paul Atkins will take a more favorable stance toward approving crypto ETFs than it did under Gary Gensler.
However, it remains unclear whether Litecoin ETFs will attract large amounts of capital from institutional investors. According to the data, institutional investors overwhelmingly prefer Bitcoin, with more than $120 billion in assets compared to Ethereum's $12 billion.
Litecoin price analysis
The daily chart shows that LTC price has been parabolic for the past few days. This rally occurred after the coin formed a double-dip pattern near $96. It has now surged above the pattern's neckline, the January 6th high of $117.17.
Litecoin is also supported by its 100-day moving average, with both the Relative Strength Index (RSI) and MACD indicators pointing upwards. Therefore, the coin is likely to continue rising as the bulls target the December 5th high of $146 as the next major level. This target represents an 18% increase from current prices.