- Litecoin’s price struggles below the $90 resistance as the SEC’s decision on an ETF approval remains uncertain.
- Without bullish momentum or approval news, LTC is likely to remain rangebound or face further downside in the short term.
Litecoin (LTC) is once again under the spotlight, but not necessarily for the reasons investors would hope. With an ETF application by Canary Capital pending a decision by the U.S. Securities and Exchange Commission (SEC), market participants are eyeing 6 May with anticipation and anxiety. While ETF approval could spark a bullish surge, the looming possibility of a delay casts a shadow over Litecoin’s near-term outlook.
Currently trading below the $90 resistance, Litecoin’s price structure remains bearish on the daily chart, despite a recent bounce from April lows of $63. For a true reversal in structure, LTC would need to breach the $96.5 level—something that looks increasingly unlikely in the absence of strong bullish momentum.
Also read: Shiba Inu Tanks Below Support – Is a Deeper Price Drop Ahead?
A look at the 78.6% Fibonacci retracement level at $89.3 highlights where bulls recently faced rejection. This resistance, coupled with weak buying pressure as indicated by the Accumulation/Distribution line, suggests that a sustained breakout is unlikely in the coming days. The Awesome Oscillator reflects some short-term bullish momentum, but it’s not backed by enough conviction to challenge existing resistances.
Further adding to the uncertainty, Coinglass’s liquidation heatmap shows key price magnets around $80.3 and $91.4. With short-term volatility expected, LTC might sweep both levels before establishing a clearer direction. However, unless there’s an ETF approval surprise, traders may need to prepare for another leg downward or extended consolidation.
Adding to the pressure is Bitcoin’s influence, which remains the macro driver for LTC’s movements. If BTC weakens, it could further suppress Litecoin’s chances of breaking out.
In summary, unless the SEC greenlights the ETF—an outcome that analysts currently view as unlikely—Litecoin may remain rangebound or even trend lower. For traders, caution is key. Tight stop-losses, range strategies, and closely tracking the ETF news cycle will be essential in navigating this uncertain terrain.
This article is for informational purposes only and does not constitute financial or investment advice.
