Canary Capital fuels Litecoin following ETF filing

Litecoin has faced a challenging year in 2024, with its price declining from a long-term support trend line. However, a recent uptick, coupled with the filing of a spot Litecoin ETF, could potentially ignite a significant rally.

Canary Capital fuels Litecoin following ETF filing

Asset manager Canary Capital's recent application for a spot Litecoin ETF in the United States has generated excitement within the crypto community. If approved, this ETF would provide investors with direct exposure to LTC. The SEC has 240 days to respond to the filing.

Litecoin's weekly chart reveals a breakdown from an ascending support trend line in May, indicating a bearish trend. However, the price rebounded from a low in August and reclaimed a horizontal support area. The current attempt to break above the trend line is crucial for confirming a bullish reversal.

Technical indicators like the RSI and MACD are at critical levels. A successful break above the trend line could lead to bullish signals from these indicators. The wave count analysis suggests a bullish pattern, indicating potential for a significant upward movement.

Potential price targets

If Litecoin successfully reclaims the trend line and continues its upward momentum, a 100% increase to $140 is possible. However, failure to reclaim the trend line could lead to a downward movement.

Litecoin's future is contingent on the approval of the spot ETF and its ability to maintain a bullish price trajectory. While technical indicators and wave count analysis suggest a positive outlook, the market remains volatile, and investors should exercise caution.