Litecoin (LTC) Price Draws Strong Attention Ahead of Key Regulatory Decision

Litecoin (LTC) price is drawing strong attention after a noticeable price increase ahead of a key regulatory decision.

The price of Litecoin (LTC) has come into the crosshairs as it continues to see strong attention ahead of a key regulatory decision.

What Happened: Litecoin price rose by 5% on Friday to reach $88.65 amid anticipation of the U.S. Securities and Exchange Commission's potential approval of a spot Litecoin exchange-traded fund proposed by Canary Capital.

This puts Litecoin back into the spotlight as both price action and developments from Washington, D.C., are expected later today.

Canary Capital's ETF proposal has become a central topic in crypto markets, helping to boost Litecoin's price, trading volume, and investor focus.

CoinMarketCap data shows a more than 56% jump in daily volume, with transactions exceeding $410 Million. This sharp increase suggests rising confidence and growing participation ahead of the SEC decision.

"Litecoin is one of the few assets that has a possible early approval," said Bloomberg ETF analyst James Seyffart on X.

Seyffart further explained that the SEC had delayed several other crypto-related filings early on but had not yet delayed this one. This detail has made market participants more optimistic about Litecoin's chances.

Approval of the ETF would allow exposure to Litecoin through traditional financial channels, reducing the need to hold the asset directly.

Analysts believe this could attract more investors, especially institutions that prefer regulated investment products. Some have also suggested that Litecoin could receive approval ahead of other altcoins, like XRP.

However, on Monday evening, the US SEC postponed the decision on Canary funds to list a Spot LTC ETF and is now seeking public comments.

From a technical view, Litecoin price has recently crossed above several key exponential moving averages on the 4-hour chart. These include the 50, 100, and 200-period averages. Its current price remains stable between $86 and $88, with short-term resistance around $90.

Key support levels remain at $84, with further support around $81 and $75.

Crypto market analyst Crypto Patel noted that Litecoin had broken out of a long-standing resistance zone.

"Confirmed breakout for Litecoin out of multi-year resistance... Same pattern. Same zone. Same breakout, ”Patel shared via X.

He also pointed out that this setup followed months of accumulation within the $65 to $85 range, which formed a solid technical base.

Historical chart data aligns with this analysis. During the 2017 and 2021 cycles, Litecoin saw large price moves after breaking similar resistance zones. In each case, LTC produced returns exceeding 2000% from previous lows, showcasing how breakout patterns have played out in the past.

This analysis is supported by blockchain data, which shows a surge in high-volume transactions on the Litecoin network. On May 4, the value of these transactions reached $8.62 Billion.

These transactions, typically valued above $100,000, are usually performed by institutions or large holders, signaling their strong interest and activity in the market.

The past week has seen persistent high transaction levels, with April 30 reaching a peak of $9.03 Billion.

This extended period of high transaction levels indicates that whales are holding rather than selling their supply while the market maintains stable price conditions.

Data from previous price cycles indicates that growing whale activity occurs before Litecoin price increases begin. Prior to both LTC bull runs during 2017 and 2021 the platform showed significant surges of high-value transactions.

Recent transaction numbers match former institutional investment periods thus indicating renewed interest from professional institutions.

The price of Litecoin maintains a consistent level of $86 while fund transactions remain active throughout the market.

The movements demonstrate that whales maintain an accumulation or repositioning strategy rather than participating in selling activities.