Key Insights
- Litecoin has been on the rise lately, especially after some price weakness on Bitcoin over the weekend.
- The cryptocurrency has climbed by around 3% to a new high of around $115.
- Asset managers like Grayscale, CoinShares and Monochrome are increasingly taking an interest in Litecoin with ETF filings.
- The Litecoin hashrate has shot up by 30% over the last month, while all of this is happening.
- The charts show a possible 200% rally incoming for Litecoin, towards the $296 zone.
Litecoin has been making headlines lately, due to its massive network activity and shifts in its market performance.
The cryptocurrency network has seen a major shift in its hashrate, just as new Litecoin ETFs continue to surface.
Here’s how Litecoin has been dominating the top-mover listings for weeks, and why an explosive bull rally could be on its way.
The Litecoin Hashrate Surge and What It Means
According to details from crypto analyst Aaron | Lefty, the Litecoin network has seen an impressive 30% shift in hashrate since January.
More interestingly, this metric has nearly doubled over the last four months.
The ongoing growth on Litecoin shows that miners are becoming more and more involved in things and that the Litecoin network is as strong as ever.
On the flip side, however, this surge has brought some challenges for individual miners.
The aspect of hashrate that isn’t talked about much, is that its increase means that more miners are jumping on:
And if more miners are involved in the Litecoin network, competition increases—along with decreased profitability for the individual miner.
Monochrome’s Push for Regulated Litecoin Investment
Amid this explosive growth in Litecoin’s hashrate, asset manager Monochrome has just filed for regulatory approval to launch its new Monochrome Litecoin ETF (LTCC) on CBOE Australia.
What does this mean?
For starters, if this ETF is approved, it could mean that Monochrome now has three crypto-based ETFs along with its Bitcoin (IBTC) and Ethereum (IETH) ETFs.
In addition, the proposed Litecoin ETF is designed to offer Australian investors a regulated means of accessing Litecoin, much like the spot Bitcoin ETFs in the US.
This approval would give Litecoin a reputation as a secure digital asset that is worthy of investor consideration.
Grayscale, Others Take An Interest
It is also interesting considering how only last week, Litecoin rallied by around 25% after other asset managers like CoinShares and Grayscale launched new ETF applications to track cryptocurrencies like XRP, Litecoin, and Solana.
Litecoin also recently reported that over the last year, Grayscale had bought around ~560,000 LTC, which also happened to be half of all the newly mined LTC supply within the same timeframe.
Overall, the institutional interest has started to increase for Litecoin and could lead to better retail attention.
In essence, Litecoin will be fully poised for a price increase with this move.
Litecoin Market Metrics
According to CoinMarketCap, Litecoin now trades at around $114.6, with a trading volume of more than $700 million over the last 24 hours.
The cryptocurrency’s price has increased by around 3% over the last day, but is still nursing a less-than-1% dip on its weekly timeframe.
According to the charts, the cryptocurrency trades within a symmetrical triangle formation, and appears to have its short-term immediate support/resistance between $111.95 and $116.34.
The symmetric triangle formation alone, shows that Litcecoin is currently in a neutral position unless a breakout from the upside or bottomside occurs.
However, the RSI shows a reading slightly above the neutral zone, indicating that despite the decision between traders, the bulls might have the upper hand.
Litecoin will likely consolidate for a while within this formation while the bulls and bears battle for dominance.
Possible price increase for Litecoin
Source: TradingView
If a break towards the upside occurs, the Fibonacci retracement tool, applied to the weekly chart shows that Litecoin could shoot straight upwards by 200% to $296.