LTC/USD closed at 267.308 after placing a high of 267.308 and a low of 244.654. After declining for two consecutive sessions, Litecoin (LTC) prices reversed on Tuesday and reached near $270 level amid the launch of Litecoin ETP on Xetra by ETC Group.
The London-based ETC Group, the firm responsible for listing the first crypto exchange-traded product on Germany’s Xetra digital stock exchange, will offer a new listing for Litecoin. In the latest announcement on Tuesday, the ETC Group has said that its physical Litecoin ETC under the ticker ELTC will be launching on Deutsche Borse Xetra on April 14. It will provide institutional investors with fully backed exposure to Litecoin.
Litecoin is currently the ninth largest cryptocurrency in the world by market capitalization. It is similar to Bitcoin as it has a fixed supply, but the main difference is that Litecoin delivers a faster block generation time with 2.5 minutes compared to 10 minutes for Bitcoin. This feature has made it popular for users seeking to conduct faster transactions.
According to the CEO of ETC Group, Bradley Duke, the current economic uncertainty has underlined crypto assets’ attractiveness among investors. They offer opportunities for diversification from traditional assets such as equities and bonds. He added that with more than 8,700 cryptocurrencies, it is a crowded market, making it difficult for investors to select assets to store and manage. The demand from institutional investors for crypto products that are more secure, liquid, and central counterparty cleared is increasing This was the reason for the third crypto ETC launch with a listing of ETC Group Physical Litecoin ETC. Furthermore, the upcoming listing of the Coinbase exchange on Nasdaq also supported the rising prices of LTC/USD on Tuesday, followed by the surge in BTC/USD prices above $63,000.
LTC/USD is trading with a strong bullish bias at 277 level, and is likely to face immediate resistance at 283 level. On the 4 hour timeframe, the pair has formed an ABCD level where the A to B leg is from 220 level to 262 level, and C to D leg is from 240 to 283. The C to D leg’s completion is suggesting chances of a bearish correction until the 271 and 262 level. Therefore, we need to keep an eye on the 283 level as below this, and we can expect a bearish correction in the pair. Conversely, a bullish breakout of 283 level can lead the pair towards 297 level. Good luck!
// Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst.
Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D.
Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.