Litecoin (LTC) has experienced an impressive 20% surge in price over the past two days, reaching over $132. The catalyst behind this rise appears to be increasing speculation surrounding the potential approval of a Litecoin Exchange-Traded Fund (ETF). As 2025 progresses, the possibility of an LTC ETF approval has grown more likely, with analysts from Bloomberg giving it a 90% chance of success.

Despite this, questions remain about whether Litecoin can maintain its upward trajectory or whether the rally will fizzle out in the short term. Here’s a breakdown of Litecoin’s price action and the factors driving its recent rise.

ETF Speculation Fuels Price Surge

According to Bloomberg analysts James Seyffart and Eric Balchunas, Litecoin’s odds of receiving approval for an ETF in 2025 are the highest among altcoins, standing at an impressive 90%. This has significantly boosted investor sentiment, leading to renewed interest in the asset. The final decision on Litecoin’s ETF approval by the U.S. Securities and Exchange Commission (SEC) is expected by October 2025, but as anticipation builds, the price of LTC has responded positively, surging past $132.

However, while Litecoin’s recent price action is encouraging, investors are now left wondering whether the altcoin can continue its uptrend as the SEC deadline looms.

Litecoin’s Price Struggles with Range Highs

On the daily chart, Litecoin has shown bullish momentum but is still trading within a $95–$140 price range that has held since November 2024. This suggests that while the price has been recovering, LTC may face resistance at the upper range.

Despite this, the Relative Strength Index (RSI) is not yet in the overbought territory, indicating that LTC could still have room for further growth if the market conditions remain favorable. A potential sell-off could occur, however, if the price hits the $135 resistance zone, especially if Bitcoin (BTC) doesn’t surpass $100,000, which could weaken the momentum.

Short-term traders who entered during the recent market correction may also decide to lock in their 30% profits, further contributing to a possible pullback.

The Path to $180: Key Levels to Watch

Looking at the longer-term chart, analysts believe that if Litecoin can break above the current range, the next key level to watch would be $180. This level represents a critical resistance zone, a point where LTC previously experienced price consolidation in 2021 before soaring to over $280.

With over 73% of Litecoin holders currently in profit, the question arises whether the asset’s growth can continue without seeing significant profit-taking from late investors. Previous rallies have shown that LTC’s price may hit a ceiling when the percentage of profitable holders reaches a certain threshold, as was the case last December and March when profitability hit 84% and 72%, respectively.

Unrealized Profit Poses a Risk for Continued Growth

One of the key factors that could cap Litecoin’s short-term rally is the high level of unrealized profits among holders. According to data from IntoTheBlock, 73% of Litecoin holders are currently in profit, which could prompt some investors to cash out if prices continue to rise.

For context, LTC reached local price peaks in December 2024 and March 2025 when profitability among holders was at 84% and 72%. These levels of profit-taking can put downward pressure on the price as investors seek to secure their gains, which could limit further upward movement in the near term.

What’s Next for Litecoin?

In the short term, Litecoin’s future price action will largely depend on the continued ETF speculation, broader market trends, and the level of profit-taking by investors. The 90% chance of an ETF approval in 2025 certainly gives LTC a favorable outlook, but its ability to sustain this growth will be determined by whether the price can break above the $140 resistance level and maintain momentum.

Long-term holders may be reluctant to sell at this stage due to the expectation of further ETF-related gains. However, if profit-taking accelerates or if the market cools down, LTC could struggle to break the $180 resistance.

Conclusion: A Critical Moment for Litecoin

Litecoin’s recent price surge has been driven by rising ETF speculation, but with high levels of unrealized profit and a key resistance level at $135, there is still uncertainty about whether the momentum can be maintained. Investors will need to closely monitor Litecoin’s price action as it navigates these crucial levels, with $180 representing the next major milestone for LTC.