TLDR:
- SEC decision on Canary Litecoin ETF due May 5 with analysts suggesting 90% approval odds
- LTC price trading around $87, having broken out of $65-$85 accumulation range
- Daily trading volumes surged 31% to over $338 million
- Analyst Crypto Patel sets short-term price targets of $255 and $500
- Litecoin ETF seen as having better approval chances than other altcoin ETFs
The cryptocurrency market is watching closely as the U.S. Securities and Exchange Commission (SEC) is set to make its final decision on the Canary Litecoin ETF today, May 5, 2025.
Market analysts are giving Litecoin a 90% chance of ETF approval, higher than other altcoins being considered for similar investment vehicles.
The LTC price currently trades around $87, having recently broken out of its multi-year resistance line after months of consolidation.
Trading volumes have jumped 31% to more than $338 million in recent sessions, showing renewed interest in the cryptocurrency.
Bloomberg ETF strategist James Seyffart has noted that while the SEC has delayed decisions on several crypto ETFs, it has yet to postpone the decision on the Canary Funds’ Litecoin proposal.
The @CanaryFunds Litecoin ETF filing is due for a decision (possibly a delay) by Monday 5/5. SEC went early & delayed a bunch of filings but not this. If any asset has a chance of early approval it's Litecoin IMO. Personally think a delay is more likely but def something to watch pic.twitter.com/FilnUcMtUH
— James Seyffart (@JSeyff) May 4, 2025
Strong Approval Chances
Litecoin’s 90% approval odds place it ahead of competing altcoin ETF proposals, with XRP at 85%, Dogecoin at 80%, and Cardano at 75%.
Would love to hear directly from Atkins, but all good chance of happening. Here’s our latest odds of approval for all the dif spot ETFs via @JSeyff https://t.co/nLhYJJmO9U pic.twitter.com/4AcJVwhics
— Eric Balchunas (@EricBalchunas) April 30, 2025
Analysts attribute these favorable odds to Litecoin’s unique attributes and regulatory history compared to other cryptocurrencies.
Despite the market optimism, Seyffart personally expects that a delay for the Litecoin ETF remains the most likely outcome and urges investors to monitor developments closely.
The Canary Capital’s Litecoin ETF proposal was initially filed on October 15, 2024, followed by a 19b-4 filing submitted by Nasdaq on January 16, 2025.
Other Litecoin ETF proposals currently under review include those from Grayscale and CoinShares, with the SEC having until October to decide on these applications.
Price Targets and Technical Analysis
Crypto analyst Patel believes LTC has broken out of its accumulation range between $65-$85, setting up short-term price targets of $255 and $500.
$LTC MACRO BREAKOUT – NEXT LEG INCOMING?#LITECOIN confirmed a breakout above its multi-year resistance line after holding the Best Accumulation Zone for months!
🔸 Support Held: ~$65
🔸 Accumulation Zone: ~$85-$65
🔸 Short-Term Target: $255/$500
🔸 Long-Term Target:… pic.twitter.com/wrFb0bpqT0— Crypto Patel (@CryptoPatel) May 4, 2025
The analyst has even bolder long-term predictions, suggesting potential price levels of $1,000 to $1,458 in the future.
Technical indicators show LTC holding above key moving averages on the 4-hour chart, including the 50, 100, and 200 EMAs, suggesting the path of least resistance remains upward.
The cryptocurrency faces potential resistance in the $88-$90 range before a possible move toward the psychological $100 mark.
Support levels are established around $84, coinciding with the 4-hour 100 and 200 Exponential Moving Averages, with additional support zones at $81 and $75.
Litecoin’s price action comes amid broader market considerations, including the upcoming Federal Reserve interest rate decision.
US President Donald Trump has urged Fed Chair Jerome Powell to cut interest rates, though inflation concerns and US-China tariff tensions may complicate the central bank’s decision.
Powell previously noted the challenging scenario where the Fed’s dual mandate goals of low inflation and unemployment may be in tension.
Today’s SEC decision on the Canary Litecoin ETF could serve as a major catalyst for LTC’s price movement, potentially helping it reach the ambitious targets set by market analysts.
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