Litecoin (LTC) price traded near $100 on May 16 after being in a downtrend since May 10.

The recent rebound follows broader market strength led by Bitcoin (BTC), which reclaimed $103,000, but is struggling to hold above $104,000.

Litecoin (LTC) price traded at $99.87 on 16 May, remaining in a downtrend since 10 May. The recent rebound follows broader market strength led by Bitcoin (BTC), which reclaimed $103,000 but struggled to hold above $104,000. Ethereum (ETH) also saw renewed buying, hovering near $2,570 after tagging the $2,500 handle earlier in the week. Most large-cap tokens show signs of stabilization as investors digest macroeconomic cues and technical support zones.

LTC's bounce, however, lags behind Bitcoin and Ethereum in both scale and conviction. While BTC surged on improved risk sentiment following cooler-than-expected U.S. inflation data, Litecoin remains range-bound.

The altcoin has failed to reclaim the $107 resistance, a level that capped multiple attempts since March earlier this year. Momentum remains thin as capital rotation continues favoring meme tokens and high-beta assets.

The broader crypto market saw improved conditions this week, with memecoins, AI tokens, and DeFi assets staging sharp recoveries. Spot volumes have picked up slightly, though derivative flows remain modest.

Adding to this, the U.S. Securities and Exchange Commission (SEC) recently postponed its decision on a proposed Litecoin ETF, limiting hopes for near-term capital inflows. That delay likely resulted in traders selling their holdings anticipating a lower LTC price tag in the near future.

Bullish Technical Setup Hints At Breakout Ahead

The LTC/USD pair is moving inside a bullish technical setup called the ascending triangle pattern. Better visible on its 3-day chart, the pattern signals a potential continuation of the previous uptrend. This formation features a flat horizontal resistance zone and a series of higher lows forming an upward-sloping trendline.

The setup suggests that buyers are gradually gaining strength with each dip being bought at higher levels. The ascending triangle is typically a continuation pattern, but in this case, it is forming after a long accumulation range, giving it a stronger bullish bias if confirmed.

The projected price target for this triangle follows standard technical methodology. Analysts measure the maximum vertical distance from the horizontal resistance to the lowest point of the triangle base. That distance is then added to the breakout level to derive the upside objective. In this case, the breakout target aligns near the $210 price level, a spike of 108% from current levels.

However, LTC price is still trading well below the pattern’s upper trendline. Price remains capped, while recent rejection from the 0.5 Fibonacci level near $100 shows bulls face near-term challenges. Volume remains relatively muted, which reinforces the view that a breakout attempt is still premature.

Immediate resistance levels are at $107, $117, and the triangle top at $131. These levels must break decisively to validate the bullish setup. Support levels include $93, $84, and the ascending trendline, currently near $76. Until LTC tests the upper boundary, the triangle remains unconfirmed. Patience is warranted as structure develops.

SEC Delay Hits Litecoin ETF Momentum And Market Outlook

The U.S. Securities and Exchange Commission (SEC) delayed its decision on the Canary Capital spot Litecoin ETF on 6 May. The agency opened a 21-day public comment period, citing concerns over market manipulation, insufficient surveillance-sharing agreements, and Litecoin's decentralized design.

According to the filing, Litecoin lacks a centralized body capable of monitoring suspicious activity, making it harder for regulators to trust price integrity. The SEC also flagged low liquidity levels compared to Bitcoin, arguing it increases manipulation risk in the absence of robust oversight.

"The Commission notes that, in its view, the integration of price and trading data from relevant markets and the ability to share such data and cooperate effectively with foreign regulators are critical to mitigate the risk of market manipulation in the light of the limited liquidity in the LTC market and the cross-border nature of the digital asset markets more generally," the release stated.

Under SEC Chair Paul Atkins, the agency has prioritized investor protection. The Litecoin delay mirrors its slow approach toward altcoin-based ETFs, especially those without established trading safeguards.

The ETF proposal, first filed in February, aims to launch an exchange-traded fund that tracks the price of Litecoin. The initiative, a joint venture by crypto hedge fund DeFi Technologies and investment firm Icosa Capital, seeks to tap into the growing demand for passive investment products in the crypto space.

The ETF will be listed on the TRADES exchange, owned by DeFi Technologies, and will allow investors to gain exposure to Litecoin without needing to set up a cryptocurrency exchange account.

The SEC's delay is likely to dampen hopes for a rapid rollout of crypto ETFs in the U.S., despite the Biden administration's efforts to promote financial innovation.

The ETF proposal is now open for a second round of feedback, with re