Litecoin (LTC) Decouples From Crypto Market Recovery as US SEC Delays CoinShares ETF Review

The decentralized peer-to-peer cryptocurrency Litecoin notably decoupled from the crypto market recovery last week.

In a noteworthy development, decentralized peer-to-peer cryptocurrency Litecoin (LTC) has diverged from the broader crypto market recovery. While the broader market is celebrating Bitcoin’s new high of $112,000 after four months of consolidation, the LTC price is still in its correction phase.

After a 9.6% decline from $107.05 to $96.82 in the last two weeks, Litecoin has slid further. As the downswing is part of the recovery trend, it is likely a pullback to recover the exhausted bullish momentum. However, LTC’s underperformance amid the broader market recovery at least hints at weakness in buyers’ conviction.

Moreover, investor sentiment took another hit as the U.S. SEC has officially delayed its decision on the proposed CoinShares Litecoin ETF, which is listed under Nasdaq Rule 5711(d). The filing, shared by James Seyffart, highlighted similar delays for other cryptocurrencies. Among them are Fidelity’s in-kind Bitcoin and Ethereum filing, BitwiseInvest and CoinShares XRP ETFs, and CanaryFunds’ staked TRX filing.

The regulatory authority’s continued indecision may dampen market sentiment and drive further price falls.

LTC 5% Away From Major Breakout

A deeper analysis of LTC’s four-hour chart shows that the recent price dip remained strictly within two falling trendlines, forming a bull flag. This chart setup is commonly observed in an established uptrend, where buyers could regain bullish momentum for the next move.

The coin price trading above the daily exponential moving average (20, 50, 100, and 200) indicates that the broader market sentiment is bullish on LTC.

If the pattern holds, the altcoin could rise 4.55% to challenge the flag resistance. A potential breakout will escalate the buying pressure and signal the continuation of the previous rally. Ideally, the post-breakout rally extends to the same length as the flagpole shot from the breakout rally.

If so, the LTC price is poised to rally 43% and hit the $145 resistance zone.

Conversely, the current correction will continue until the sellers manage to defend the overhead resistance.