Litecoin Price Set to Surpass 2-Month Resistance Amid ETF Proposal Momentum
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Litecoin (LTC) is experiencing a significant surge in positive momentum, with its price soaring by 10% in the last 24 hours. This sudden rally coincided with the US Securities and Exchange Commission (SEC) reviewing the application for the Canary Spot Litecoin exchange-traded fund (ETF).

Despite LTC confirming a bullish double-bottom pattern, it is yet to surpass a crucial resistance level at $133. The market is currently divided, with whales beginning to unload their holdings, while retail investors remain hopeful.

Litecoin Whales Selling Off

Recent whale activity suggests a cautious stance amidst the price surge. On-chain data indicates that Litecoin addresses holding between 10,000 and 100,000 LTC have sold more than 230,000 tokens valued at around $30 million within a day. These significant holders are leveraging the ETF buzz to secure profits, hinting at possible short-term price fluctuations.

Despite the hype surrounding a potential Litecoin ETF, there is lingering uncertainty. Whales often set trends in the market, and their recent selling spree raises concerns about LTC's ability to uphold its rally. Continued selling pressure may challenge retail investors in maintaining momentum, potentially resulting in a pullback.

Litecoin’s broader momentum remains positive, supported by improving technical indicators. The Chaikin Money Flow (CMF), a critical measure of capital flow, has risen above the zero line. This signals increasing buying pressure, bolstering the potential for sustained growth.

In the past, rising CMF values have aligned with upward price trends, reflecting investor confidence. If this pattern persists, LTC could find the necessary support to surpass its resistance level, setting the stage for higher price targets.

Securing Strongholds for LTC Price

Litecoin's recent uptick follows the SEC's review of the Canary Spot LTC ETF application. This development led to a 10% surge in LTC's value, edging it closer to the pivotal $133 resistance level. However, breaking through this barrier presents a challenge due to whale-driven selling pressure introducing market volatility.

Despite confirming a bullish pattern, Litecoin has yet to breach the longstanding resistance and is currently trading at $128. While the altcoin remains above the critical support level of $113, continued whale selling could keep LTC consolidating below $133 in the short run.

A definitive breakthrough above $133 could initiate a broader rally, propelling LTC towards $145. Surpassing this point would nullify the current bearish-neutral sentiment, potentially paving the way for a stronger recovery. Should bullish momentum intensify, Litecoin could establish a higher range, solidifying its position as one of the top altcoins in the market.

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