ETF Optimism Fails to Prevent Litecoin’s Decline in Sluggish Market

Litecoin Holds Steady Amid Hints of Golden Cross and ETF Optimism

Litecoin (LTC) remained largely stable over the past 24 hours, consolidating after retreating from a recent two-week high above $88. The cryptocurrency is currently trading between $85 and $87, caught in a tug-of-war between dip-buyers seeking bargains and sellers defending resistance at the $87 level.

Technical signals suggest a potential “golden cross” formation is brewing, where the 50-day moving average crosses above the 200-day moving average. Such a pattern is often seen as an early indicator of a longer-term upward trend. However, LTC must convincingly break past the $87 threshold to confirm sustained bullish momentum, according to CoinDesk Research’s analysis.

Meanwhile, broader crypto markets showed little movement, with the CoinDesk 20 (CD20) index edging down 0.25% over the last day.

Hopes for ETF Approval Fuel Market Sentiment

Optimism around Litecoin’s future remains strong. On Monday, Bloomberg analysts raised the chances of the U.S. Securities and Exchange Commission approving spot exchange-traded funds (ETFs) for XRP, Solana, and Litecoin to 95% by the end of 2025. Betting platform Polymarket echoed that sentiment, putting the odds at 86%.

Approval of a Litecoin ETF would make it easier for traditional investors to gain exposure to LTC via standard brokerage accounts, potentially boosting both demand and market liquidity for the asset.

Key Technical Developments

Over the past 24 hours, LTC has traded within a narrow $2.09 band—a fluctuation of around 2.46%—as traders tested both support and resistance levels. Sellers have frequently stepped in between $86.65 and $87.10, where trading volumes have been elevated.

On the flip side, strong buyer interest has consistently defended the support zone between $85.02 and $85.23, acting as a price floor during midday trading on July 1.

While the broader 24-hour chart suggests caution, showing a series of lower highs along a declining trendline, shorter time frames hint at potential upward momentum. Earlier today, LTC rebounded modestly from $85.22 to $85.59, a 0.43% increase. This bounce was accompanied by a surge in trading volume above 5,500 LTC per minute, helping the price overcome minor resistance at $85.50.

Additional support appeared between $85.03 and $85.18 during the same hour. Combined with an emerging ascending channel pattern marked by higher lows, the data signals that despite cautious market sentiment, Litecoin may be gearing up for another move higher.