Litecoin (LTC) price surges 25% following Grayscale’s spot ETF application

Litecoin (LTC) has experienced a remarkable 25% price increase this week. This surge follows the announcement of Grayscale’s application for a spot Litecoin ETF. As a result, institutional investors have shown significant interest, validating the strategies of long-term holders (LTHs). This development also provides a buffer against market fluctuations.

The Impact of Long-Term Holders

Long-term investors play a crucial role in stabilizing Litecoin’s market position. The MVRV Long/Short Difference indicator remains positive. This suggests that LTHs are currently enjoying profits. Instead of selling, these investors prefer to hold onto their assets. This behavior reduces the risk of sharp price corrections and offers essential support to the cryptocurrency.

Building a Strong Foundation

The holding behavior of long-term holders (LTHs) has created a robust foundation for Litecoin. As a result, this behavior allows the asset to maintain its upward momentum, even during periods of market volatility. Moreover, by retaining their investments, LTHs act as a stabilizing force. Consequently, this helps sustain Litecoin’s growth trajectory and bolsters investor confidence.

Positive Market Sentiment and Momentum

Furthermore, Litecoin’s upward momentum is supported by the IOMAP metric. Specifically, this data shows that investors have accumulated over 2 million LTC in the price range of $128 to $135, which amounts to more than $256 million in value. If Litecoin can establish $136 as a support level, then this supply will become fully profitable. Thus, this development will enhance overall market sentiment.

Anticipation of Resistance Breakthrough

In addition, the concentration of profitable investors is likely to keep sentiment optimistic. There is a growing anticipation of breaking through the $136 resistance level. This expectation is driving bullish sentiment, as investors believe LTC can continue its upward trend. Moreover, strong support at these levels further reinforces the asset’s growth potential.

Current Trading Status

Currently, Litecoin is trading at $128 after a notable 25% increase in the past 24 hours. However, it now faces resistance at $136, which is a pivotal level for sustaining upward momentum and achieving additional gains.

Potential for Future Growth

If Litecoin successfully converts the $136 level into support, it could unlock $256 million in profits associated with this price point. Such a development could propel LTC to $147. This would mark a significant milestone in its ongoing rally and reaffirm investor confidence.