Key Highlights
- Bloomberg analysts assign a 90% probability to the Litecoin ETF, with preparations underway.
- Active addresses on the Litecoin network have surged to 8.24 million, indicating strong engagement despite price declines.
- Analyst warns of a bearish setup. There is a potential for the Litecoin price to drop to $98 if selling pressure continues.
Bitcoin and other major crypto are experiencing the worst February. Still, Litecoin (LTC) price has retained much of its gains. This showcases its fundamental strength and investors’ unshakable trust in the asset.
As the general market experiences concerns, some analysts have joined and voiced that it could dip beneath the $100 mark. However, the growing network activity and ETF buzz have added optimism to the LTC price.
At press time, Litecoin price was trading at $126, reflecting a 9% incline over the past 24 hours. However, the token was still down 12% from 2025’s peak.
Meanwhile, the continued development of LTC’s network may give enough momentum to reverse the bearish trend. The probable approval of its ETF in the coming weeks may also provide some traction.
Why Litecoin ETF Odds Are Much Higher Than Any Other Crypto?
Following the 2024 ETF approvals for Bitcoin and Ethereum by the SEC, the price charts for both cryptocurrencies have shown undeniably strong upward momentum, which was later joined by other factors.
With Donald Trump back in the presidential seat, Litecoin crypto appears to be next in line for ETF approval. This could also significantly boost the LTC price. This potential is bolstered by Litecoin’s proof-of-work (PoW) consensus mechanism, which closely resembles that of Bitcoin.
Several other assets that align with Litecoin ETF odds await ETF approvals. The regulatory changes observed in 2025 have sparked speculation that many pending proposals could soon gain the green light.
Once approved, more cryptocurrencies can join Bitcoin and Ethereum in the ETF arena. Additionally, investors will have several choices.
The excitement surrounding this possibility has intensified. This started after Bloomberg analysts assigned a 90% probability of approving the Litecoin ETF alongside other ETF prospects.
Canary Capital’s Litecoin ETF recently appeared on the Depository Trust & Clearing Corporation (DTCC) system. This indicated that crucial preparatory steps are underway.
Here, Bloomberg analyst Eric Balchunas confirmed this development but cautioned that approval is not guaranteed. ETF specialist Nate Geraci linked this progress to the early stages of Bitcoin ETF preparations.
CoinShares has also submitted an SEC application for an LTC ETF in a show of institutional interest. If approved, this ETF could drive demand for Litecoin price. It could also reverse its current downtrend and give it a much-awaited boost.
Network Activity Remains High Despite Declining Litecoin Price
Despite a price decline, trading activity on the Litecoin network remains robust. According to data from IntoTheBlock, active addresses have surged to 8.24 million.
This surpassed the 30-day average of 8.15 million, indicating consistent growth in network engagement. Moreover, LTC’s transaction traffic has seen a significant uptick. Over the past six months, transaction volumes have boosted from $3.74 Billion to $11.37 Billion.
This boost is reflecting increased usage of the network. Also, this trend suggested that future activity could be further bolstered if prices stabilize.
Historically, heightened network activity has often preceded rising prices. If this trend continues, the Litecoin price may be able to halt its downward trajectory.
This could reverse the bearish trend. However, future movements will largely depend on shifts in the broader market environment.
Amid Litecoin ETF Hopes Analyst Stresses On Risk Of Litecoin Price To Dip Beneath $100 Mark
LTC price action has weakened recently as anticipation for ETF approvals grows. The overall bearish market trend influenced the weakness. It was also influenced by Bitcoin’s recent dip below the crucial $90,000 support level, unsettling investors.
Crypto analyst Ali Martinez noted a bearish setup for Litecoin price. This indicated that the asset was trading within a parallel channel.
Recently, it faced rejection at the upper resistance level and has since declined to the channel’s midline. There, it was now hovering at press time.
If selling pressure persists, bears could drive Litecoin crypto down toward the channel’s lower boundary, near $98. This would represent another drop below the significant psychological support of $100.
However, on intraday, it has recovered 9% in one single shot candle. Investors are keenly watching to see if buyers will step in and take the price to 2025’s high or if it is just another volatile candle.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
