- Litecoin surged 10% despite the SEC delaying spot crypto ETF approvals, defying market expectations.
- Whale activity and technical strength fueled the rally, while its recent halving impacted supply dynamics.
Litecoin Defies Market Gloom with a 10% Surge
Litecoin (LTC) shocked the cryptocurrency market with a 10% price surge over the weekend, defying predictions of a market downturn after the U.S. Securities and Exchange Commission (SEC) delayed the approval of several spot Bitcoin and crypto ETFs. While most altcoins remained flat or experienced slight declines, Litecoin’s rally caught investors off guard.
SEC Delay Doesn’t Shake Litecoin Bulls
The SEC’s decision to postpone spot ETF approvals for major cryptocurrencies like Bitcoin and Ethereum typically triggers negative sentiment in the market. However, LTC remained immune to the downward pressure, benefiting from its distinct status. Analysts suggest that because Litecoin is not currently on the list for spot ETF approvals, it avoided the regulatory uncertainty that affected other assets.
Whale Activity and Technical Strength
On-chain data indicates increased whale activity during the LTC price surge, with large investors accumulating more Litecoin. Additionally, technical analysis revealed a bullish trend, with Litecoin surpassing its 50-day moving average, generating buy signals for algorithmic traders. The Relative Strength Index (RSI) remained just below the overbought zone, suggesting potential for further gains.
Litecoin’s Halving Effects Begin to Show
Litecoin’s third halving event in August 2023, which reduced block rewards from 12.5 LTC to 6.25 LTC, is finally making an impact on LTC’s price dynamics. With fewer coins entering circulation and consistent demand, any spike in buying pressure could lead to significant price movements.
What’s Next for Litecoin?
Despite the recent bullish momentum, analysts caution that the cryptocurrency market remains highly volatile. Litecoin’s price will likely encounter resistance between $100 and $105 in the coming days. If positive sentiment persists, Litecoin could outperform expectations in Q2 2025, making it a coin to watch closely.
