On January 29th, Wednesday, the crypto market experienced a bullish turnaround amid the Federal Reserve’s confirmation of maintaining the federal funds rate at 4.25% to $4.5%, aligning with the market expectation. As a result, most major cryptocurrencies, including LTC, witnessed a notable uptick and potential to stall prevailing correction at key supports. However, the Litecoin price could gain accelerated momentum amid the steady progress in its U.S.-based ETF approval
Currently, the LTC’s market cap stands at $8.77 Billion, and the 24-hour trading volume is at $787.5 Million.
Key Highlights:
- The Cup and Handle reversal pattern drives current consolidation in Litecoin price before a major breakout.
- The $141 level stands as a key supply zone against crypto buyers.
- The U.S. SEC has acknowledged the 19b-4 filing for the Canary Litecoin ETF, marking a significant step in the approval process.
Litecoin ETF Proposal Advances to Public Comment Stage
The U.S. Securities and Exchange Commission (SEC) has acknowledged the 19b-4 filing for the Canary Litecoin ETF. This move invites public comments on the proposed rule change to list and trade the ETF’s shares under Nasdaq Rule 5711(d).
Bloomberg analyst Eric Balchunas highlighted this is the first altcoin ETF filing to reach this stage, as the rest were rejected or withdrawn following SEC recommendations.
“This filing is by far the furthest along checking all the boxes,” said Balchunas. He later added concern about whether the SEC will take the full 240 days for ETF approval or hasten the process.
Litecoin Price Consolidation Hints Major Breakout
Over the past two months, the Litecoin price has traded sideways within two horizontal levels of $141 and $102. The altcoin bounced twice from the aforementioned levels, indicating their strong influence on price movement.
However, this consolidation in weekly chart analysis shows the formation of a cup and handle pattern. This classic reversal pattern displays a long-form accumulation in U-shaped recovery and temporary correction to replenish bullish momentum.
With Litecoin price currently in this second phase, the crypto holders could witness a prolonged consolidation below the $141 neckline. If buyers manage to build sufficient momentum for the neckline breakout, the coin price could drive 70% up to hit the $242 level.
Also Read: Bitcoin Bull Run ‘Not Over’ as U.S. Reserve Ratio Signals More Upside
