TL;DR

Litecoin jumped to a two-week high, outperforming top cryptocurrencies like Bitcoin (BTC) after the SEC acknowledged Canary Fund’s spot LTC ETF filing. Analysts predict the price could soar to as high as $300, but its RSI nearing overbought levels signals a potential pullback.

How High Can LTC Go?

The cryptocurrency sector has witnessed a revival in the past 24 hours, with its global market capitalization soaring above $3.7 trillion. The resurgence occurred shortly after the latest FOMC meeting, following which the US Federal Reserve kept the interest rates unchanged at 4.25% 4.50%. It is worth noting that, at first, the Feds decision triggered a market decline. 

In a subsequent conference, Chairman Jerome Powell said the central bank was not against innovation with regard to cryptocurrencies. He also stated that local banking institutions are perfectly able to serve crypto customers, as long as they understand and can manage the risks. 

Some of the cryptocurrencies whose prices headed north after the press conference include Bitcoin (BTC), Solana (SOL), Cardano (ADA), Chainlink (LINK), and many others. 

Meanwhile, Litcoin (LTC) has outperformed all top 20 digital assets, witnessing a 14% rise on a 24-hour scale. Currently, it trades at approximately $130, which is the highest level observed since mid-January.

Perhaps the most obvious factor contributing to the double-digit rally is the US SECs acknowledgment of Canary Funds intention to launch a spot LTC exchange-traded fund (ETF). Once the agency acknowledges such a filing, it initiates a regulatory review process that can take up to 240 days. The potential approval of an LTC ETF would allow more options for investors to gain exposure to the asset and could positively affect the price in the long term. 

Several analysts noted LTCs latest pump, envisioning further gains during this bull cycle. According to the X user Nebrascangooner, the asset looks mega bullish and might soar to around $160 sometime next month. Prior to that, they assumed that Litecoins potential bull run could be followed by a Bitcoin (BTC) pump. 

George chipped in, too. The X user assumed that LTC might mimic the impressive performance of Ripples XRP and skyrocket to $300.

Bought a spot bag again and longed on margin, the analyst added.

Something for the Bears

Despite the overall bullish environment and the optimistic forecasts from market observers, LTCs Relative Strength Index (RSI) signals an incoming correction.

The technical analysis tool measures the speed and change of price movements to help traders identify possible trend reversals. The RSI varies from 0 to 100, with readings above 70 suggesting that the asset is overbought and could be due for a pullback. The ratio has been gradually increasing in the past few days, currently standing just shy of the bearish mark.