Litecoin Surges 10% on ETF Hopes and Merchant Activity Amid Quiet Rotation

Litecoin (LTC) rose by greater than 11% prior to now 24 hours, edging above $123, marking one of many sharpest large-cap rallies this week as merchants rotated into legacy altcoins amid enhancing sentiment and contemporary ETF chatter.

The transfer, which made LTC as the most important weekly gainer among the many prime hundred tokens, comes as a mixture of structural adoption and regulatory tailwinds.

In July, litecoin accounted for 14.5% of all crypto funds on CoinGate, the agency stated in an X put up, leapfrogging stablecoins like USDT and USDC and second solely to bitcoin (BTC).

As such, hypothesis over a spot ETF continues to construct regardless of the SEC delaying its resolution on Grayscale’s software till October.

Bloomberg analysts pegged the percentages of eventual approval at 90% in early July, citing LTC’s commodity classification by the CFTC — a distinction that reduces authorized danger and locations it alongside bitcoin and ether (ETH) in regulatory readability.

Elsewhere, MEI Pharma disclosed a $100 million litecoin allocation final month, echoing early bitcoin treasury strikes and giving LTC a unique approach as a low-beta treasury asset. While the purchase hasn’t moved markets materially, the optics assist.

Meanwhile, information from CoinDesk Analytics exhibits LTC broke above its 7-day easy transferring common and faces a key pivot degree at $117.61. Relative energy index (RSI) sits at 69.5 — elevated, however not but signaling exhaustion. However, early MACD divergence suggests momentum could also be cooling if inflows don’t maintain.

Traders are watching $124–$131 as a resistance zone, per analytics, and an in depth above might sign a structural breakout.