Litecoin Price Prediction: Can Litecoin Reach $140 After Coinshares and Grayscale Submit Applications?

Background Information:
Grayscale Investments and Coinshares have submitted applications to the U.S. Securities and Exchange Commission (SEC) to launch a Litecoin ETF. Grayscale filed a Form 19b-4, aiming to list its Grayscale Litecoin Trust as an ETF; Coinshares submitted an S-1 form proposing to launch its Litecoin ETF. These applications come right after Canary Capital's submission, making Grayscale and Coinshares the second and third asset management companies seeking approval for a Litecoin ETF.

Litecoin's Price and Market Activity:
As of the time of writing, Litecoin (LTC) is trading at $122.05, having risen by 4.47% in the past 24 hours, although it has decreased by 2.63% over the past week. The circulating supply of Litecoin is 75 million, with a market cap of approximately $9.22 billion. On the 4-hour chart, Litecoin's price seems to be consolidating within the Bollinger Bands, with immediate resistance at $130 and short-term support at $117.11. The MACD indicator shows a bullish crossover, indicating increased bullish momentum.

Correlation Between Trading and Price Movements:
Data from IntoTheBlock reveals a strong correlation between large transactions and price movements. On January 18, large transactions reached 4.93 thousand, corresponding to prices nearing the $140 level. However, the number of large transactions has dropped to 3.43 thousand, indicating reduced market activity, with Litecoin consolidating above $120. The decrease in new and active addresses may suggest a decline in speculative interest during this consolidation phase.

Potential Impact:
The applications for a Litecoin ETF submitted by major asset management firms like Grayscale and Coinshares could boost market sentiment. If approved, these ETFs may bring more institutional investment and liquidity, supporting higher price levels. Technical indicators show a resistance level at $130 and a support level at $117.11, with a breakout or breakdown potentially determining Litecoin's short-term direction.

Grayscale Investments and Coinshares have filed applications with the U.S Securities and Exchange Commission (SEC) to launch Litecoin ETFs. According to Nate Geraci, President of the ETF Store, Grayscale submitted a 19b-4 form to list its Grayscale Litecoin Trust as an ETF. Additionally, Coinshares filed an S-1 form to propose its Litecoin ETF offering.These applications follow a previous submission by Canary Capital, making Grayscale and Coinshares the second and third asset managers to seek approval for a Litecoin ETF. This marks a continuation of greater interest in crypto-related ETFs, with optimism growing under the current SEC administration for potential approvals.Litecoin’s price and market activityLitecoin (LTC) was trading at $122.05 at press time, following a 4.47% price hike in the last 24 hours. This, despite losing 2.63% of its value over the past week. With a circulating supply of 75 million LTC, Litecoin’s market capitalization stood at approximately $9.22 billion.On the 4-hour chart, Litecoin’s price seemed to be consolidating within the Bollinger Bands, with immediate resistance at $130 and near-term support at $117.11. The lower band at $111.25 represented a critical downside level in case of bearish activity. On the chart, the MACD indicator flashed a bullish crossover, with the MACD line crossing above the Signal line. This hinted at increasing bullish momentum, though diminishing histogram sizes highlighted the need for stronger buying pressure to push the price higher.Correlation between transactions and price movementsData from IntoTheBlock revealed a strong relationship between large transactions and price movements. In fact, large transactions peaked at 4.93k on 18 January 2025, corresponding to the price trading near the $140-level on the charts.  However, the number of large transactions dropped to 3.43k – Indicating reduced market activity as Litecoin consolidated above $120.Such a drop in large transactions seemed to align with a fall in address activity. In fact, over the last 7 days, new addresses declined by 7.43%, active addresses dropped by 9.36%, and zero-balance addresses decreased by 11.15%. This finding alluded to lower network participation, possibly signaling reduced speculative interest during this consolidation phase.Potential impact on Litecoin’s priceThe filing of Litecoin ETFs by major asset managers like Grayscale and Coinshares could boost market sentiment for Litecoin. If approved, these ETFs may bring more institutional investment and liquidity. Such an approval could support higher price levels.With technical indicators pointing to resistance at $130 and support at $117.11, a breakout or breakdown will likely determine Litecoin’s short-term direction. A hike in participation from institutional investors following ETF approval could drive the price towards its previous peaks of $140 or higher.

Litecoin Price Prediction: Can ETF Applications Drive the Price to $140?