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Litecoin – Examining how a delay in ETF approval will affect traders like you

2min Read

Lack of bullish conviction behind Litecoin meant that a breakout beyond $90 appeared unlikely.

Litecoin - Examining how a delay in ETF approval will affect traders like you
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  • Bearish swing structure meant investors can maintain their bearish outlook
  • Short-term momentum was bullish, but a move beyond $90 may be difficult

A decision on the Litecoin [LTC] ETF application by Canary Capital is due for a decision by Monday, 05 May. In a post on X, James Seyffart, the analyst specializing in exchange-traded funds (ETFs), noted that the SEC has not delayed this application, although it could get delayed on Monday. He elaborated further, stating that LTC had a good chance of an early approval.

News of an approval could boost LTC’s bullish prospects, but traders must note that a delay appeared more likely at press time. This could keep the coin’s prices below the $90-local resistance.

Litecoin faces rejection at key Fibonacci retracement level

LTC 1-day Chart

Source: LTC/USDT on TradingView

The 1-day chart revealed that Litecoin had a bearish swing structure, despite its bounce from $63 in April. The $96.5 swing high must be breached to turn the structure around. However, the lower timeframe structure was bullish, and the D1 Awesome Oscillator also highlighted upward momentum.

And yet, the A/D showed that buying pressure has been weak over the past month. This is not good news for investors. Furthermore, the $89.3-level represented the 78.6% Fibonacci retracement level.

LTC bulls faced rejection from this level a few days ago, and the price appeared to form a short-term range from $83.3 to $88.8. The weak demand meant that a rejection from $89 might be more likely than a bullish breakout.

Litecoin Liquidation Heatmap

Source: Coinglass

The 2-week liquidation heatmap underlined the $80.3 and $91.4 regions as the nearby magnetic zones that could attract the price towards themselves. The $91.4-level was closer at press time, making it slightly more feasible as a target. The short-term momentum of Bitcoin [BTC] would likely also influence LTC.

In the coming days, the range formation is likely to remain in place. The lack of bullish conviction, combined with the liquidation levels outlined by the chart above, suggested that Litecoin will likely sweep both levels before embarking on its next impulse move.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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