While most cryptocurrencies remain stagnant, Litecoin (LTC) has surged over 12%, trading near $129 and approaching a $9 billion market cap. Analysts point to bullish momentum, with growing optimism surrounding a potential Litecoin exchange-traded fund (ETF) fueling investor interest.

What’s Driving Litecoin’s Momentum?

One key factor behind LTC’s rise is speculation that the U.S. Securities and Exchange Commission (SEC) could approve a spot Litecoin ETF. The regulator recently acknowledged Canary Fund’s application, raising market expectations. According to Polymarket, there’s now an 81% probability of approval by the end of 2025, which could boost institutional investment.

Bullish Technical Signals for LTC

Crypto analysts highlight Litecoin’s strong price action. XForceGlobal sees LTC following a pattern similar to XRP, hinting at long-term upside. Meanwhile, analyst Anup Dhungana notes that LTC has broken out from a bullish consolidation phase, suggesting an uptrend reversal.

Carl Moon identifies an ascending triangle pattern, with LTC rebounding from $96 support. If a breakout occurs, traders are eyeing further upside potential in the near term.

Institutional Interest and Market Activity

Litecoin’s derivatives market is seeing heightened activity, signaling strong investor interest. Open interest in LTC futures jumped 17.91% to $599,92 million, while trading volume spiked 253,86% to $1,81 billion. This sharp rise in market participation indicates growing confidence in LTC’s ability to sustain its uptrend.

As momentum builds, traders are watching key resistance levels to determine whether Litecoin’s rally has more room to run.