Litecoin Price Forecast: LTC rally hits eight-month high amid firm ETF inflows

Litecoin (LTC) price extends a steady recovery on Thursday, trading at an eight-month high above $68.00. Despite the broader cryptocurrency market facing an intraday sell-off linked to rate-hike concerns, retail demand for LTC holds firm, with the value of active futures contracts rising 12% in 24 hours. The technical outlook for Litecoin indicates an upside bias as bullish momentum remains firm despite signs of overbought conditions.

Institutional catalyst fuels Litecoin rally

Litecoin maintains a steady recovery following the announcement that Grayscale filed an amended S-3 request with the US Securities and Exchange Commission (SEC) to convert its Litecoin Trust into a spot LTC Exchange-Traded Fund (ETF). In addition, Canary Capital’s listed Litecoin ETF has recorded $402.140 in inflows so far this month, up from $239.030 in outflows in August. 

On the retail side, Litecoin derivatives are seeing renewed inflows, likely driven by speculative, leverage-seeking demand. CoinGlass data shows the LTC futures Open Interest (OI) is up 12% to $610.90 million over the last 24 hours. This marks the largest positional buildup in LTC futures since January 19, recording an eight-month high. 

However, the OI fails to provide a clear directional bias among traders as it is the total of all active long and short positions. The mild uptick in the OI-weighted funding rate to 0.0032% indicates near-term interest among traders in buying long positions at a premium. 

Still, the long liquidation of $1.78 million in the same period is marginally greater than the short liquidation of $1.19 million, keeping the bias mixed.

Technical outlook: Litecoin’s trend reversal gains traction

Litecoin trades around $68.47 at press time on Thursday, continuing its steady recovery from the June 25 low of $39.28. The altcoin is up 40% so far this month, recording an eight-month high. In addition, LTC rallies well above the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) at $52.85, $50.97, and $54.04, respectively, projecting a clear bullish bias.

Momentum remains firm on the daily chart with the Moving Average Convergence Divergence (MACD) extending its rise above the signal line in the positive territory, hinting at persistent upside momentum. However, the Relative Strength Index (RSI) at 80 indicates overbought conditions.

Looking up, the LTC rally targets the lost support level set by the December 18 low at $72.64, followed by the January 6 high at $84.89.

On the downside, immediate support is seen at the 200-day EMA at $54.04, followed by the 50-day EMA at $52.85 and the 100-day EMA at $50.97, forming a dense structural floor if a pullback unfolds.

(The technical analysis of this story was written with the help of an AI tool. Know more.)