Litecoin, one of the earliest alternatives to Bitcoin, rallied sharply in early trading after traders rotated capital into legacy altcoins amid a broader slowdown in overall market volatility. The token advanced from around $110 to highs near $123 within a 24-hour window, representing an 11% gain. Observers noted that a growing number of payment processors reported significant merchant activity on their networks, with Litecoin accounting for 14.5% of total transaction volume on major on-chain payment platforms, surpassing stablecoin usage for the first time since mid-2025.
Market participants attributed the move to mounting speculation that the U.S. Securities and Exchange Commission could greenlight a spot Litecoin exchange-traded fund later in the year. Bloomberg analysts have estimated a 90% probability of such approval, citing Litecoin’s clear classification as a commodity by the Commodity Futures Trading Commission. That regulatory clarity has reduced perceived legal risk for institutional allocators considering exposure to digital assets beyond Bitcoin and Ether. Meanwhile, data from CoinDesk Analytics showed that Litecoin’s on-chain metrics improved across the board, with daily active addresses rising by 12% and average transaction size increasing by 8%.
Technically, Litecoin broke above its 50-day simple moving average at $117.60, a pivot level that traders had monitored after the token’s sustained performance in July. The relative strength index on the four-hour chart reached overbought territory, signaling potential short-term retracement but underlying bullish momentum. Merchant gateways also reported a surge in consumer payments denominated in LTC, reflecting growing real-world usage that complements the asset’s narrative as a digital payment network. In July, processors like CoinGate and BitPay saw Litecoin volumes rise by 25% month-over-month, reinforcing the token’s status as a leading medium of exchange.
Looking ahead, analysts have identified resistance near $124 to $131, with a decisive break above that zone likely to trigger further inflows. Should the SEC confirm a spot Litecoin ETF application, the token could attract fresh capital from institutional fund managers seeking regulated access. Conversely, a delayed decision may introduce volatility but not necessarily upend the broader uptrend, given persistent on-chain demand and the token’s entrenched merchant foothold. Traders remain attentive to U.S. macroeconomic data releases and potential shifts in ETF flow patterns, which will shape short-term price dynamics before Litecoin embarks on its next directional phase.
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