Litecoin has found itself at a critical juncture as traders await news on the approval of a proposed Litecoin exchange-traded fund (ETF) by Canary Capital. While early speculation suggested a strong chance of acceptance, mounting uncertainty about regulatory delays has cast a shadow over LTC’s short-term price trajectory. If the approval is delayed—as appears increasingly likely—Litecoin could struggle to break past its $90 resistance, with market sentiment leaning cautiously bearish.

At the time of writing, Litecoin is trading in a short-term bullish structure, showing signs of recovery from April’s dip to $63. However, on the daily chart, the broader trend remains bearish. For Litecoin to reverse this trend decisively, it would need to break through its previous swing high of $96.5. So far, that level has remained untouched, as bullish momentum continues to weaken.

Adding to this outlook is the price rejection at the $89.3 level, which corresponds to the 78.6% Fibonacci retracement of the previous downtrend. This key technical resistance has so far held firm, with LTC recently pulled back and trading within a narrow range between $83.3 and $88.8. The lack of sustained buying pressure is evident in on-chain metrics like the Accumulation/Distribution (A/D) indicator, which has been mostly flat. This suggests that despite price movement, real demand for Litecoin has remained weak.

An ETF approval could have given Litecoin a strong narrative-driven push. Historically, ETF news often leads to sharp price movements due to renewed institutional interest and broader retail participation. However, if the U.S. Securities and Exchange Commission (SEC) chooses to delay the decision, as some analysts anticipate, it may rob LTC of that near-term catalyst. Analyst James Seyffart had mentioned that there were no official delays yet, but the possibility of one being introduced was very real.

From a technical standpoint, Litecoin’s short-term movements may also be influenced by broader market behavior, particularly Bitcoin’s price action. If Bitcoin manages to rally, LTC could benefit from the spillover momentum. However, without independent demand or a clear breakout catalyst like the ETF approval, Litecoin is more likely to remain in its current consolidation zone.

Looking at the liquidation heatmap over the past two weeks, two critical price zones stand out: $80.3 and $91.4. These levels are seen as magnetic zones where high liquidation interest could draw price movements. With $91.4 just above the current range, there’s a chance Litecoin could attempt to test this level. However, the proximity of $80.3 as a potential lower boundary creates a scenario where Litecoin may swing in both directions before committing to a clear trend.

For traders, this creates a challenging environment. Those looking for a breakout need to see strong confirmation above $91, ideally supported by high volume and improved buy-side momentum. On the other hand, if LTC fails to gain traction and ETF delays weigh down sentiment, a dip below $83 could signal renewed bearish pressure.

In summary, Litecoin’s price is caught between technical resistance and regulatory uncertainty. The short-term outlook is heavily dependent on the SEC’s decision regarding the ETF. A delay would likely suppress bullish enthusiasm and keep LTC trading below $90 in the near term. Until stronger demand or regulatory clarity emerges, traders may have to navigate this consolidation range with caution, watching closely for signs of the next decisive move.