Traders are optimistic about the chances of launching spot Litecoin ETFs on the American stock market. The likelihood of such an instrument appearing is estimated by users of the popular betting platform Polymarket at 89%.
Against the backdrop of rising positive expectations, the price of LTC has strengthened.
On the exchange MEXC the altcoin surpassed 120 USDT over the past weekend – the highest level since August 22, when it reached 122.8 USDT. This week, the coin corrected to 114.3 USDT as part of the adjustment.
Against the backdrop of the September rally, the largest whale activity in the Litecoin network was observed in the last two months. In addition to the increase in the number of transactions over $100 million, wallets with a balance of over 1000 LTC have also become active.
The accumulation of crypto indicates that many investors are preparing for the appearance of spot ETF funds that will track the performance of the altcoin.
1. Aggressive growth triggered a rapid correction
At the beginning of this week, Litecoin entered a correction phase after a surge in the first half of September. The local peak for the altcoin in the current cycle was the mark of 120.81 USDT, reached on the MEXC exchange on September 13.
At that moment, the Relative Strength Index (RSI) jumped above 80 and entered the overbought zone. The subsequent correction of the LTC price was inevitable after such an aggressive run. On September 15, the coin fell to $111.9, and only the next day was it able to slightly improve its position, rising above $114.
The RSI indicator after the drop was in the neutral zone, and in the coming days, it should determine the direction of further movement of the crypto in the spot market.
A quick rebound from $111 indicates a strong support zone here. This means that most traders are currently not interested in falling below $110. A collapse is possible, but only in the case of a chain reaction, and if bears begin to dominate. However, so far, medium and large investors are refraining from selling.
In the first half of September, Litecoin was among the front-runners of the altseason.
The greatest activity was demonstrated by whales and sharks holding more than 1000 coins. Last week, on September 10, they acquired about 181,000 LTC in just one day. The whale influx was the strongest since July 2025. The number of transactions of amounts over $1 million reached 349, reports Santiment.
Applications for launching a spot crypto ETF are one of the main triggers of the September rally. Users Polymarket are confident that such a tool will appear on the American stock market this year. If in July the probability of launching an ETF on LTC was estimated at only 60%, now it has risen to 89%.
The inflow of institutional and retail capital will create conditions for Litecoin to soar to $150. Another factor stimulating the growth of LTC will be the return of the altseason, which many market participants are waiting for.
According to CryptoRank, the decline in Bitcoin’s dominance index to a seven-month low indicates a redistribution of capital in favor of other digital currencies. Coins like HYPE, BNB, and MNT have already updated their all-time highs, and demand for other altcoins is expected to increase in the coming months.
2. Bulls are interested in jumping LTC to $135
At the beginning of September, the increase Litecoin was accompanied by an increase in trader activity in the futures market.
Open interest in futures surpassed $1 billion for the first time since August 25. Many investors were focused on a bullish scenario, but bears managed to trigger a retreat in crypto in the middle of this month.
As a result, the total amount of open contracts fell to a monthly minimum of $884.9 million (according to CoinGlass) against the backdrop of falling spot prices.
Trader activity in the derivatives market began to rise again as LTC was able to bounce back after maintaining positions above $110. Consequently, interest in the asset approached $1 billion.
On the MEXC exchange, open interest in LTC futures increased by 0.87% to $38.11 million in the last 24 hours. The rate on perpetual swaps sharply increased.
Bulls are interested in a jump of the altcoin to $135. Only in this case will the coin have a chance to soar to $150. According to Alpha Crypto Signal, in the coming days, LTC will be trading in the support zone formed in the range of $112 to $115.
If Litecoin can consolidate at this level, the next step will be an attempt to break the resistance in the range of $120 to $125. If such a barrier is surpassed, crypto will be able to clear its way to $135.
Bulls are counting on exactly such a scenario in September-October. If it is realized in the coming weeks, the altcoin may finish 2025 at $150.
However, if bears manage to push below $110, support may only strengthen after the LTC price falls to $100-97.
3. The launch of spot ETFs will improve the long-term prospects for LTC.
Several applications for the launch of spot crypto ETFs focused on Litecoin are currently under consideration by the Securities and Exchange Commission (SEC).
Investors are expecting the emergence of such an instrument, which will become another channel for testing the asset.
Applications from Grayscale and Canary Capital hold a special place. The regulator has not yet made a decision on them and has taken a pause for a deeper analysis of the consequences of issuing an instrument that directly invests in Litecoin.
Currently, only two spot crypto ETFs are available in the US for Bitcoin and Ethereum. These instruments appeared on the stock market last year.
The issuance of the ETFs for BTC and ETH has created conditions for institutional capital to enter the largest digital currencies. A similar mechanism should also be launched for crypto funds investing in LTC.
According to Bloomberg analyst James Seyffart, the SEC may issue a decision on the Canary Capital application in early October. This week, the investment company adjusted its application for the launch of an ETF on LTC, which will be available to traders on the Nasdaq exchange.
The annual management fee will be 0.95%, but Canary reserves the right to make additional changes to the document submitted for review by the American regulator.
Disclaimer: This information is not investment, tax, legal, financial, accounting, consulting advice, or any other related service, nor does it constitute advice to buy, sell, or hold any assets. MEXC Training provides information for reference purposes only and is not investment advice. Please ensure that you fully understand all risks and exercise caution when investing. The platform is not responsible for users’ investment decisions.
Join MEXC and Get up to $10,000 Bonus!
