Litecoin price continued its strong rebound as traders waited for the potential launch of the spot LTC ETF by the Securities and Exchange Commission and as the crypto market rebounded.
Summary
- Litecoin price jumped as the crypto market rebounded.
- The deadline for the Canary LTC ETF is on Thursday.
- The risk is that LTC has formed a head-and-shoulders pattern
Litecoin (LTC) token jumped to a high of $111.65, its highest level since Sept.22 and 11% above its lowest level in September.
The LTC token jumped as the crypto market rallied after the weak ADP jobs numbers, which raised the possibility that the Federal Reserve will slash interest rates again this month. It also rallied because October is one of the best months in the crypto industry.
Most importantly, the coin is rising as investors anticipate the upcoming approval of a spot LTC ETF, which could happen as soon as Thursday when the final deadline of the Canary Capital spot LTC arrives.
Polymarket odds of the agency approving the Litecoin ETF have jumped to more than 90%, indicating a high probability. Besides, Litecoin is a large proof-of-work cryptocurrency like Bitcoin, which means that the agency does not view it as a security.
While the LTC ETF approval will be important, the risk, however, is that it may not be as popular among American investors as Ethereum and Bitcoin have been. For example, crypto.news data show that its daily trading volume in both the spot and the perpetual futures markets is minimal.
Litecoin price technical analysis
The other notable risk is that Litecoin price has formed the risky head-and-shoulders chart pattern on the daily timeframe chart. As the name suggests, this pattern is made up of a head, two shoulders, and a neckline. In this case, the neckline is at $107, while the head and shoulders are at $134 and $121.
Therefore, the LTC price will likely have a bearish breakout in the coming days, even if the ETF approval happens, as investors will likely sell the news.
A bearish breakout could see it drop to the important support level at $100.4, its lowest level in September. A move below that price will point to more downside, potentially to $90.
The bearish Litecoin price forecast will become invalid if the price moves above the shoulders at $121.35. Flipping that level will point to more upside to the head section at $134.
