Litecoin’s Potential Rally Against Bitcoin
A surge in open interest, price movements around a key support level, and a proposed spot exchange-traded fund (ETF) seeking regulatory approval — Litecoin (LTC) has more than one reason to be in the news. The cryptocurrency has been making rapid advancements to make its mark in the crypto market, and analysts are finding it hard to ignore its movement.
As the token tests a new support level, crypto users are wondering if it will surpass other top tokens. According to analysts, it might be time to bring back the Litecoin vs Bitcoin debate as the LTC token posts new highs.
What is Litecoin?
Litecoin is a leading cryptocurrency that is used for making quick online payments.
Litecoin was inspired by Bitcoin’s proof-of-work protocol and has often been compared with the $BTC token. Litecoin differs from Bitcoin in terms of factors like the hashrate, block transaction time, and the hard cap.
Litecoin was trading at $94.35 with a market cap of over $7.3 billion at the time of writing. In a recent development, cloud mining platform ZA Miner rolled out its mining services for Litecoin and a host of other cryptocurrencies. Using ZA Miner, crypto miners can access their daily gains without requiring any hardware.
With features like daily payments and real-time profit tracking, crypto miners can look forward to a seamless experience.
What are the numbers saying?
While the overall sentiment around Litecoin remains bullish, the token has been shuttling between $94 and $96 for more than a week. Analysts are of the view that the dips below $95 are likely to be short-lived.
In late April, Litecoin shifted away from a long-term declining trend and has been gravitating towards a support level since then.
Key price indicators show that currently, the LTC token is testing the $95 mark as support. If Litecoin stays on the support level, it could head towards bullish territory.
In case the price falls below $95, the next support levels to watch out for are $92.71 and $90, which coincide with the 50-day and 200-day moving averages, respectively.
Factors Fuelling Litecoin's Potential Rally Against Bitcoin
Given Litecoin's largely favorable price movements over the past year, around 77% of $LTC owners have held the token for over a year, which serves as an indicator of the decline in short-term selling pressure. Here are a few other reasons that could fuel a potential Litecoin rally.
1) Pending Approval for Litecoin ETF: Market stakeholders appear to be quite confident of the Litecoin ETF getting a regulatory green light in the US this year. Filed by Canary Capital, the LTC ETF is awaiting approval from the Securities and Exchange Commission.
Recent data from Polymarket indicates that the chances of a Litecoin ETF approval in 2025 are as high as 79%.
2) Open Interest: Litecoin's open interest recently crossed $887 million, its highest in four years. Analysts feel a Litecoin rally might be around the corner, as historically any major uptick in open interest is followed by bullish price movements.
3) MWEB integration: The recent integration of MimbleWimble Extension Blocks (MWEB) with the Litecoin ecosystem has also pushed the cryptocurrency's popularity. The move can pave the way for better privacy and scalability for the Litecoin network.
4) Attention From Whales: Litecoin has been steadily garnering support from whale addresses and miners. As per media reports, whales amassed $LTC tokens valued at around $29 million in January.
Also, the cryptocurrency's hashrate rose 400% as compared to its last-recorded major breakout, which signals strong support from miners.
Conclusion
The optimism around the LTC token ETFs, its technical prowess, and rising open interest are some of the factors that are leading many analysts to root for it in the Litecoin vs Bitcoin debate.
With a section of analysts putting the chances of an LTC ETF being approved in 2025 at 90%, it might be worthwhile to keep a close watch on Litecoin.
