TL;DR

Litecoin (LTC) has jumped by double digits in the last 24 hours amid optimism around a potential spot LTC ETF approval by the US SEC. While analysts predict further gains, the RSI index indicates overbought conditions, suggesting a possible short-term correction.

More Room for Growth?

The cryptocurrency market hasnt seen much action in the past 24 hours, with most leading digital assets either charting minor losses or consolidating at their levels from Sunday.

However, there are some exceptions, with Litcoin (LTC) being one of the most evident examples. The assets valuation has surged by approximately 10% on a 24-hour scale, making it the best performer from the top 100 club. It currently trades at around $116 (per CoinGeckos data), while its market capitalization is inching closer to $9 billion.

LTC Price, Source: CoinGecko Following the latest rally, the percentage of Litecoin investors sitting on paper profits has jumped to 77%, while 16% remain underwater. 

An important factor that may have fueled the uptrend is the growing optimism that the US Securities and Exchange Commission (SEC) might approve a spot Litecoin ETF soon. Not long ago, the agency acknowledged Canary Funds intention to introduce that investment vehicle in America. According to Polymarket, there is an 81% chance that such a product will see the light of day before the end of 2025.

Numerous industry participants noted LTCs resurgence, predicting this could be the start of an explosive bull run. The X user XForceGlobal assumed that the asset is shaping up to be the next XRP. 

I am accumulating for the next two years. The only missing piece is liquidity; yet, it has maintained one of the longest streaks of higher lows in price action a key factor I look for when accumulating, they added.

Carl Moon and Sjuul also weighed in. The former told his almost 1.5 million followers on X that LTC is breaking out of a particular ascending triangle, which could result in a price spike to $128. 

Sjull maintained that the tokens chart looks really promising, adding that any potential corrections ahead could be interpreted as buy-the-dip opportunities.

Bulls, Beware With This Factor

Despite the overall optimism, Litecoins Relative Strength Index (RSI) signals a possible pullback in the short term. The technical analysis tool measures the speed and change of the assets price movements to help traders assess overbought or oversold conditions.

It varies from 0 to 100, with readings above 70 indicating that LTC might be overvalued and due for a correction. The ratio has gradually increased in the last few weeks, recently entering bearish territory.