Litecoin Looks at 35% Rally Potential Following US ETF Launch

Litecoin (LTC) could be on the verge of a major upside breakout as a wave of macro and fundamental tailwinds, including a new US ETF launch, stokes fresh risk appetite across crypto markets.

Litecoin Fundamental Analysis: ETF, US-China Deal in Focus

Optimism around a potential US–China trade agreement has lifted equities and risk assets globally, while markets are now pricing in a Fed rate cut as early as December.

Lower interest rates tend to favor non-yielding assets like cryptocurrencies by reducing opportunity costs and encouraging speculative inflows. The approval of the first US spot Litecoin ETF adds to this bullish mix, providing traditional investors with a regulated gateway into the Litecoin market.

Litecoin ETF may start trading as early as tomorrow. With a proven, reliable network and tiny $7.7B market cap, a small fraction of Bitcoin ETF inflows would significantly boost Litecoin’s value. https://t.co/oWZAVzvdwq

— Kyle Barnes (@kyle8824) October 27, 2025

This trifecta of easing geopolitical tensions, monetary support, and ETF-driven legitimacy mirrors conditions seen during previous major crypto cycles, the kind that often triggers capital rotation from Bitcoin and Ethereum into “digital silver” assets like Litecoin.

Litecoin Rebounds From Key Fibonacci Support

On the weekly chart, Litecoin has rebounded sharply from its 0.236 Fibonacci retracement level near $94, a region that has historically served as a reliable accumulation zone for long-term investors.

This sets the stage for a potential 35% rally toward $136 in November, aligning with the 0.382 Fib level. The pattern resembles Litecoin’s late-2020 structure, when a similar recovery from compressed moving averages preceded a multimonth uptrend.

As of Tuesday, LTC was testing both its 20-week EMA ($104.8) and 50-week EMA ($103.3) as resistance. The cryptocurrency must break these levels to hit the $136 upside target, or it would risk plunging toward the $94 support.

LTC also remains underbought, being one of the few top-ranking cryptocurrencies that have not reached their record high since May 2021. It’s also down 1.50% so far in 2025.

An ETF launch may prompt speculators to pursue rotational trades: selling overbought assets and deploy those winnings into the Litecoin market.