Litecoin (LTC) Surges Past $100 Amidst Institutional Interest and ETF Hopes
Litecoin (LTC) is experiencing a resurgence, trading around $104 on Friday after breaking above $100 for the first time in nearly two months. This rally is fueled by growing institutional demand, highlighted by MEI Pharma’s (MEIP), a NASDAQ-listed company, launch of a dedicated strategic treasury.
MEI Pharma Invests $100 Million in Litecoin
The Litecoin Foundation has announced MEI Pharma’s $100 million LTC treasury strategy, in collaboration with Titan Partners Group and cryptocurrency investment firm GSR. This move signals a significant vote of confidence in Litecoin’s long-term potential.
Adding to the excitement, Charlie Lee, the creator of Litecoin, will join MEI Pharma’s Board of Directors. The Litecoin Foundation has also invested in MEI Pharma, aligning the missions of both companies to promote the global adoption of the cryptocurrency network.
“For 14 years, Litecoin has consistently provided a stable, low-cost, and accessible network for millions,” said Lee. “This partnership with GSR and MEI Pharma brings that utility and mission to an institutional environment for the first time.”
Interest in Litecoin is steadily increasing, with both institutional and retail investors showing support. Polymarket users estimate an 87% chance that the U.S. Securities and Exchange Commission (SEC) will approve a spot Litecoin exchange-traded fund (ETF) by the end of 2025.
The approval of spot Bitcoin (BTC) and Ethereum (ETH) ETFs in the U.S. has sparked increased interest from Wall Street players, driving consistent price increases. A Litecoin ETF could provide institutional investors with a regulated avenue to gain exposure to the cryptocurrency.
Technical Analysis: Litecoin Aims to Hold Above $100
Litecoin’s price is currently trading at $104, up nearly 2% on the day. The cryptocurrency is holding above key moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), all of which are situated between $90 and $92.
The 50-day and 100-day EMAs are likely to confirm a Golden Cross pattern in the coming sessions, potentially extending the bullish trend amid strong investor confidence.
A buy signal, validated by the Moving Average Convergence Divergence (MACD) indicator on June 28, further supports the bullish outlook for Litecoin. The MACD’s blue line crossing above the red signal line indicated a buying opportunity.
Green histogram bars above the zero line, coupled with an increase in volume to $1.47 million, suggest consistent buying pressure, increasing the likelihood of extending the uptrend to $112, tested on Friday, and $140, previously marked as resistance in February.
Potential Risks: Overbought Conditions
However, the bullish outlook could be at risk as the Relative Strength Index (RSI) has entered overbought territory, currently at 74. If the RSI continues to rise, the risk of a correction or consolidation increases as the market becomes overheated, encouraging profit-taking.
Extremely high RSI readings often precede trend reversals. Therefore, traders should prepare for a potential pullback below $100 towards the cluster of moving averages currently between $90 and $92.
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