Litecoin Price Prediction: 20% Dip to $86 And ETF Odds at 76% – What’s Next?

Litecoin (LTC) has dropped about 20% from the May high and is trading at $86.27 on a daily volume of $255 million.

Quick overview

  • Litecoin (LTC) has experienced a 20% drop from its May high, currently trading at $86.27 amidst a broader altcoin market decline.
  • The narrative around LTC includes a 76% chance of a US ETF approval and increased accumulation by large holders, indicating positive sentiment.
  • Technically, LTC is consolidating between key levels, with a potential bullish breakout above $86.60 and a bearish scenario if it falls below $84.43.
  • Traders are advised to manage risk with tight stops and look for confirmation before making moves in this pivotal market phase.

Litecoin (LTC) has dropped about 20% from the May high and is trading at $86.27 on a daily volume of $255 million. This is in line with the broader altcoin market, including Cardano and Link, and not because of any weakness in LTC itself.

Short term dips are common in markets that have just surged – especially during consolidation. Despite the drop, the core story is still intact.

ETF Speculation and Whale Accumulation

The growing narrative around LTC is the 76% chance of a US ETF and its similarity to Bitcoin’s proof of work and 84 million supply, nearly 4x that of Bitcoin’s 21 million.

Meanwhile on chain metrics show big holders are buying; wallets holding 100,000 to 1 million LTC increased their balance by 2 million since mid April. Micro level sentiment is shifting, Litecoin’s social dominance is at 0.734% and rising.

Technical Setup: Watching $86.60

On the 2 hour chart LTC is consolidating between the 38.2% fib at $86.30 and the 50 period EMA at $86.60. Price action is tight with small spinning top candles and no bearish trends like three black crows. The MACD histogram has crossed up from negative and is a early sign that buyers may be taking control.

Litecoin Price Chart - Source: Tradingview
Litecoin Price Chart – Source: Tradingview

Trade Plan for Beginners

Bullish:

  • Entry on a 2 hour close above $86.60
  • Targets: $87.81 (50% fib), then $89.32 (61.8% fib)
  • Stop loss: Just under $84.43

Bearish:

  • Entry if price closes below $84.43 with volume
  • Target: $81.43
  • Stop loss: Above $86.60

Litecoin is at a pivot point. A break above the resistance could spark a move to the $90 zone, a failure to hold support could lead to more downside. This is a simple and risk aware trade, look for confirmation, manage risk with tight stops and let price guide the next move.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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