Litecoin Rallies 11% on ETF Optimism and Merchant Demand Amid Broader Altcoin Rotation
Litecoin (LTC) posted an impressive 11% gain over the past 24 hours, breaking above $123 and outperforming the broader market. The rally comes as investors rotate into legacy altcoins with regulatory clarity and growing real-world use cases, amid low overall trading volumes.
LTC’s breakout positions it as one of the week’s strongest large-cap performers, supported by renewed ETF speculation and an uptick in merchant-level crypto adoption.
Renewed Optimism Around Spot ETF
Much of the recent momentum has been driven by growing expectations for a spot Litecoin ETF. Although the SEC has pushed its decision on Grayscale’s LTC Trust to October, analysts at Bloomberg continue to assign a high probability of approval, citing Litecoin’s commodity status under the Commodity Futures Trading Commission (CFTC).
With regulators already recognizing Bitcoin and Ethereum as commodities, Litecoin’s similar classification enhances its chances of gaining institutional exposure through regulated financial products.
Merchant Activity Points to Real-World Utility
Beyond ETF hopes, Litecoin’s strength is also tied to usage trends. According to payment processor CoinGate, Litecoin accounted for 14.5% of crypto payment volume in July—ranking second behind Bitcoin and outpacing stablecoins like USDT and USDC.
This adoption surge reflects Litecoin’s appeal as a low-fee, fast-settlement asset for everyday payments. For many merchants, it’s emerging as a practical alternative to more volatile or congested blockchains.
Further adding to institutional interest, MEI Pharma recently disclosed a $100 million LTC allocation, echoing early corporate Bitcoin treasury strategies. While the announcement hasn’t caused major market ripples, it signals growing trust in Litecoin’s long-term value proposition.
Technicals Flash Bullish—With Caution
Technically, Litecoin has cleared its 7-day moving average, and momentum remains positive. The Relative Strength Index (RSI) sits near 69.5—flirting with overbought territory but not yet signaling exhaustion. However, early MACD divergence suggests the pace of gains may be cooling, especially if volume doesn’t confirm the breakout.
The next key resistance zone lies between $124 and $131. A clean move through that range could open the path to higher levels, though traders are watching for a potential consolidation phase if momentum stalls.
