Litecoin price held steady on Wednesday, a day after the Securities and Exchange Commission delayed the Canary LTC ETF.
Litecoin (LTC) rose to $93.70, its highest level since March 26, and 43% above its lowest level in April.
The coin rallied even the SEC delayed approving a spot LTC ETF by Canary, a fast-growing asset management company. As a result, the odds of approval on Polymarket dropped to 75% from this week’s high of 80%.
A spot LTC ETF is seen as having higher chances of approval due to Litecoin’s similarity to Bitcoin. Both are proof-of-work coins, with key differences in their maximum supply caps and mining algorithms.
Bitcoin (BTC) has a maximum supply of 21 million coins and uses the SHA-256 algorithm. Litecoin, on the other hand, has a cap of 84 million and utilizes the Scrypt algorithm, which is more memory-intensive.
An approved Litecoin ETF would likely spur some institutional demand, though its inflows are expected to lag behind those of Bitcoin and Ethereum (ETH), which are much bigger and more popular coins.
Recent data from SoSoValue shows that Wall Street interest is still focused on Bitcoin, with spot BTC ETFs attracting over $40 billion in inflows. Ethereum ETFs have seen about $2.5 billion.
Litecoin price technical analysis
The daily chart shows that Litecoin has rallied from its April bottom of $63.15 to around $90. It has climbed above the 61.8% Fibonacci retracement level at $87 and the 50-day Exponential Moving Average — both signs of bullish momentum.
More importantly, LTC has formed an inverse head and shoulders pattern, a classic reversal formation. The head is at $63, with the shoulders near $83.
Litecoin has also moved above a key pivot-reversal level on the Murrey Math Lines tool at $87.50. Additionally, the Awesome Oscillator has crossed above the zero line, further indicating increasing momentum.
