Litecoin Price Prediction: After ETF Flunk, Will LTC Hit $80?

The market waited for months to get a Litecoin (LTC) exchange-traded fund (ETF), but Wall Street doesn’t really seem to be too interested in it now that it is live.

LTC has booked an 11% gain in the past 7 days to $95 as the crypto market tanked right after the United States announced the end of the longest government shutdown in its history.

Market participants were spooked by Powell’s comments in late October that questioned the feasibility of a third interest rate cut in December.

This caused a major wave of liquidations, resulting in nearly $4 billion worth of long positions being wiped out of the market in the past 7 days alone.

Canary Capital Litecoin ETF (LTCC) – Source: Canary Capital Official Website

Meanwhile, Canary Capital got the first Litecoin ETF approved right around the time that the FOMC meeting occured. In 20 days, this fund has attracted a meager $6.3 million, making it one of the worst-performing altcoin-linked ETFs launched this year.

Similar funds linked to XRP (XRP) and Solana (SOL) have attracted hundreds of millions, underscoring the market’s low appetite for Litecoin as an investment.

Litecoin Faces 13% Downside Risk Despite ETF Launch

The daily chart shows that the price plummeted to $80 right after the ETF hit the trading floor. It managed to recover to $111 a few days after, but is once again heading to that support area as market sentiment continues to be heavily depressed.

Trading volumes have spiked by 12% in the past 24 hours and currently account for 11% of Litecoin’s circulating market cap, confirming the strength of the latest selling spree.

The beginning of altcoin season was effectively derailed by a handful of macroeconomic headwinds, including President Donald Trump’s hostilities with China on the trade front.

LTC/USD Daily Chart (Coinbase) – Source: TradingView

Paired with this change in the Fed’s dot plot, we may not get new all-time highs this year for tokens other than BNB Coin (BNB) and Ethereum (ETH).

The Relative Strength Index (RSI) for LTC has dropped below the 14-day moving average, reflecting that negative momentum is accelerating. The 200-day exponential moving average would be the key resistance to watch moving forward.

As long as the price trades below this line, it means that the dominant trend is bearish. If LTC hits $80 again, as it did recently, this would mean a downside risk of 13% in the next few days.

Meanwhile, the market’s lack of appetite for Litecoin’s ETF could be interpreted as a signal that institutional interest is weak, which could have a dramatic impact on the token’s long-term performance.

Other Key Levels to Watch for LTC

Heading to a lower time frame, the price just dropped below a former area of support at $93 that could now act as resistance if LTC tries to recover in the next few days.

LTC/USD Hourly Chart (Coinbase) – Source: TradingView

In this hourly chart, the $90 level could now act as support in the near term, but a trend reversal seems unlikely as bearish momentum has accelerated.

A trend reversal would only be confirmed if LTC recaptures the $93 area in the next few days. However, a break below $90 would seal the deal and put the token on track to hit $80 in a matter of days.