Litecoin Price, OI Look Up, Yet Another ETF Milestone

While the crypto market has been struggling with low volatility, LTC has somehow managed to maintain robust activity evident in its Litecoin price action.

It is on track to conclude February as one of the most active coins during the month.

Speaking of activity, the latest Litecoin price uptick was in line with derivatives activity which maintained an upward trajectory.

Its open interest clocked in at $915.72 million in the last 24 hours. This marked the highest level that it has achieved in the last 4 years.

The last time that Litecoin’s futures open interest was higher was during the 2021 bull run.

This performance confirms that there has been growing interest in the cryptocurrency, accompanied by higher liquidity and market activity.

But what’s really driving this surge?

Is Litecoin ETF Optimism Behind the Recent Excitement?

Litecoin is among the cryptocurrencies that are currently on the list of candidates for ETF approvals.

Optimism about a potential approval sometime soon might be one of the reasons behind the latest excitement around LTC.

A recent update over the matter revealed that the SEC has given the green light for public comments over the Coinshares Litecoin ETF proposal.

Favorable comments mean the cryptocurrency will be closer to an ETF approval.

This also means the jury is still out on the potential Litecoin ETF listing date. So far Grayscale, CoinShares and Canary Capital have pending Litecoin ETF filings.

This is confirmation of ballooning institutional demand for the cryptocurrency.

Litecoin Price Latest Upside Encounters Resistance

Litecoin price maintained a strong bullish performance in the last 2 weeks, which has allowed it to push back to December and January highs.

LTC demonstrated clear resistance at the $139 price level in the last 3 months.

The latest bullish push to the same resistance level has already yielded some sell pressure.

LTC had already rose by over 7% at its $138.27 press time price tag. Litecoin now looks like it’s averted the risk of another bearish retracement.

But can LTC bulls make another attempt and potentially break above the aforementioned resistance level any time soon?

The fact that the SEC just paved the way for comments means an ETF approval may not occur before the end of February.

As a consequence, this potential catalyst may not shield Litecoin price from more potential downside.

Meanwhile, a strong wave of sell pressure could potentially push the cryptocurrency as low as $97 for a 3-month support level retest.

Such a bearish outcome means Litecoin price could tank by as much as 24% to the next major support level.

However, there are some key observations to note regarding its latest performance.

Litecoin’s robust open interest may have played a key role in its strong recovery from its dip at the start of February.

This means the cryptocurrency’s downside might be limited especially if open interest remains high.

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