The U.S. Securities and Exchange Commission (SEC) has been actively engaging in discussions with potential ETF issuers, with BlackRock leading the charge with five meetings this month. Grayscale also held four meetings, alongside others like Fidelity and Hashdex. December was particularly busy for ETF talks, fueling strong sentiments that approvals may be imminent. The focus now shifts to the fate of Litecoin (LTC) Coin in this context.
Since August 17, Litecoin’s price has been on a gradual uptrend with frequent corrective movements, heavily influenced by Bitcoin‘s volatility. Investors remain cautious due to deep dips experienced during the halving period, which has instilled a fear of further declines.
Weekly chart readings suggest that the downtrend line from the last bull season in 2021 continues to suppress LTC’s price. The cryptocurrency initially broke above this trend line in June 2023 but failed to sustain the upward movement. Currently, the RSI is in a neutral zone, and LTC is struggling to maintain the $70 level, with Bitcoin’s position above $44,100 providing a glimmer of hope.
Analysts are more optimistic about LTC’s price trajectory, with some predicting a climb to $300 following a breakout from a long-term pattern. There’s a belief that LTC could outperform Bitcoin, with price forecasts for the coming months ranging from a conservative target of $1,250 to an aggressive goal of $6,250, suggesting significant potential during the next bull run.
On the daily chart, LTC’s price has been rising within an ascending parallel channel since August 17, which often precedes corrective movements. If the channel breaks downward, a retreat to $58 is expected, but an upward break could propel the price to $92. While analysts’ lofty targets are rarely met, and they cannot predict the future, the daily chart’s support and resistance levels appear more rational for the coming months.