Litecoin (LTC) has seen a significant surge in price recently, gaining 24% over the course of a week, with a massive rise in trading volume. This bullish movement has been fueled by growing optimism surrounding a potential Litecoin ETF, and technical signals suggest that the cryptocurrency may be on the verge of a major breakout. With Litecoin now regaining its position within the top 15 cryptocurrencies by market capitalization, reaching nearly $10 billion, many traders are turning their attention back to the asset, which was previously considered “dead” by some.

Growing Optimism Around Litecoin ETF Approval

A key factor driving Litecoin’s price surge is the increasing speculation that the Litecoin ETF could soon be approved. According to a Bloomberg ETF analyst, the chance of a Litecoin ETF being approved is about 90%, largely because Litecoin is not classified as a security like XRP or Solana (SOL). This has created a sense of “ETF FOMO” (fear of missing out) among market participants, fueling a renewed sense of bullishness for the coin.

As a result, Litecoin has gained substantial strength against the US dollar and has shown impressive performance against the Bitcoin pair (BTC/LTC). With growing optimism surrounding the potential approval of an ETF, Litecoin appears to be preparing for a major breakout, with price targets ranging from $180 to $200 in the short term. This optimism, combined with the rising market volume, suggests that Litecoin could see further upside in the coming weeks.

Bullish Technical Indicators: The Golden Cross

From a technical perspective, Litecoin’s weekly chart is showing incredibly bullish signals. The price has been forming higher highs and lows since the start of 2023, indicating that bullish momentum has been steadily building for more than 20 months. This long accumulation period has set the stage for a potential breakout that could trigger a massive rally.

One of the most significant indicators of a potential price surge is the formation of the first-ever weekly “Golden Cross” for Litecoin. The Golden Cross occurs when the 50-day moving average (MA) crosses above the 200-day moving average (MA), signaling a shift towards a stronger uptrend. In the past, similar Golden Cross formations for Bitcoin and Ethereum led to massive rallies and new all-time highs (ATH). If Litecoin follows this pattern, we could see a breakout above key resistance levels, with price targets reaching $180, $200, and potentially higher.

Key Resistance Levels to Watch

Looking at Litecoin’s price action, the key levels to watch for resistance are $152, $167, and $198. If Litecoin manages to break through these levels, it could pave the way for a rise towards $225, marking an important milestone in the current rally. However, the bullish momentum doesn’t appear to stop there. If the uptrend continues, Litecoin could be on track to reach new all-time highs, potentially surpassing the $400 mark and even heading towards $500 during the next major bull run.

Litecoin’s Path to a New ATH

Given the current market dynamics and bullish technical indicators, the outlook for Litecoin remains highly positive. The growing interest in a Litecoin ETF, coupled with strong market participation and the first-ever Golden Cross on the weekly chart, points to the potential for a massive rally. If Litecoin can successfully breach key resistance levels and continue its upward trajectory, we could see the cryptocurrency push towards new all-time highs in the near future.

In conclusion, Litecoin’s current price action and technical signals indicate that a significant breakout could be imminent, potentially pushing the price towards the $500 mark. As the ETF speculation continues to drive sentiment, Litecoin looks poised for a strong bull run, and investors are watching closely for further developments.