Potential grayscale Litecoin ETFs lead to 25% rise in LTC price

The price of Litecoin surged 25% this week following news that Grayscale filed for a spot Litecoin ETF, sparking demand from institutional investors.

The move validated the efforts of long-term holders (LTHs), whose support stabilized LTC during market volatility. This development has positioned Litecoin as an outstanding performer in the cryptocurrency market.

Litecoin has investor support

Long-term holders of the coin have played a crucial role in Litecoin’s stability. The long/short spread indicator MVRV remains very positive, indicating that LTH is making profits. These investors, known for their tendency to HODL rather than sell, provide fundamental support, reducing the likelihood of sharp corrections.

This behavior has created a strong foundation for Litecoin, enabling it to sustain gains even during periods of market volatility. By holding their assets, LTHs act as the backbone of Litecoin, ensuring that the cryptocurrency maintains momentum and gains the trust of investors.

Litecoin’s overall momentum remains bullish, supported by the IOMAP metric. The data reveals that investors bought over 2 million LTC, worth over $256 million, within a range of $128 to $135. This offer becomes fully profitable once Litecoin moves $136 to support, boosting positive sentiment.

This concentration of profitable investors is likely to keep sentiment upbeat. The expectation of a breakout of the $136 resistance level has increased bullish momentum, as investors remain confident in LTC’s ability to maintain its upward trajectory. Significant support at these levels enhances the asset’s ability to continue to grow.

LTC Price Prediction: Flipping the Major Barrier to Support

Litecoin is up 25% in the past 24 hours, and is currently trading at $128. The altcoin is now facing resistance at $136, which will be crucial to maintain its bullish momentum and make further gains.

If Litecoin breaks $136 and turns it into support, it could unlock $256 million in profits tied to that level. Such a move would likely push LTC to $147, marking an important step in its continued rise and validating investor confidence.

However, failure of Litecoin price to cross the $136 level could lead to a drop to $117 or even $105. This would erase much of the recent gains, invalidate the bullish outlook, and delay the realization of expected profits.