Litecoin (LTC) has surged 9.4% in 24 hours to $119.30, extending its winning streak to six days despite broader crypto market declines. Trading volume more than doubled the 14-day average as LTC broke through key resistance at $116, with the network processing 12% of its lifetime transactions in 2025 alone. However, questions remain about Litecoin’s utility – while marketed as a payment alternative to itcoin">Bitcoin, its DeFi ecosystem remains negligible with just $3 million in total value locked (TVL).
The rally appears driven by speculation around potential spot ETF approvals after the CFTC classified LTC as a commodity in March. Three firms – Grayscale, CoinShares, and Canary Capital – have filed for Litecoin ETFs, benefiting from shifting regulatory winds under the new SEC leadership. Analysts suggest short covering may also be accelerating gains, as traders who bet against LTC are forced to buy back at higher prices. Despite the momentum, Litecoin lacks clear competitive advantages in payments compared to stablecoins or faster Layer 1 networks.
Technical indicators suggest a pullback may be imminent. The RSI has entered overbought territory, and $121-122 represents a historical resistance zone where LTC has repeatedly reversed. A healthy retracement could test $115 support before attempting another leg up toward $130 (13% upside). While the ETF narrative provides long-term optimism, traders should watch volume trends closely – sustained institutional interest will be needed to maintain these gains beyond speculative trading activity.
