Litecoin Rises 3% Amid Growing Demand for Crypto ETFs
Litecoin (LTC) increased by 3% on Wednesday as more investors show interest in cryptocurrencies with Exchange Traded Funds (ETFs). Vanguard Group recently approved third-party ETFs on its platform, boosting crypto demand. Data from derivatives markets show strong buying, especially from large investors. This supports the chance of further price gains for Litecoin.
Vanguard’s ETF Approval Drives Litecoin Derivatives Demand
Litecoin is gaining strength after Vanguard allowed exposure to crypto through third-party ETFs. This includes access to the Canary Litecoin ETF (LTCC) for cautious investors. This move may bring more capital into Litecoin and other digital assets.
- Litecoin ETF net flow was zero on Monday and Tuesday.
- Total net inflow remains at $7.67 million, according to Sosovalue data.
- Litecoin futures Open Interest rose 4.41% in 24 hours to $440.26 million.
- More short positions were closed than long ones, showing rising investor optimism.
- Whales increased their average buy order size in Litecoin futures, signaling confidence.
Technical Analysis Shows Bullish Signs for Litecoin
Litecoin is rebounding from support levels set between October 17 and November 4. It is forming a falling wedge pattern, which often precedes a price rise. The next targets are the 50-day EMA at $92.94 and the 200-day EMA at $99.51.
If Litecoin breaks above the 200-day EMA, it would confirm a bullish breakout. Momentum indicators support this view:
- The Relative Strength Index (RSI) is at 45, showing less selling pressure.
- The Moving Average Convergence Divergence (MACD) is about to cross above its signal line.
If the price falls, Litecoin may find support near lows from November 4 ($79.68) and December 1 ($74.66).
