A Decision on the Litecoin [LTC] ETF Application by Canary Capital is Due by Monday, 05 May

The analysis of Litecoin’s price movements and technical indicators suggests that while the coin has been displaying bullish tendencies in the lower timeframes, it encountered resistance at a key Fibonacci retracement level, hinting at more technical analysis.

Canary Capital's application for a Litecoin (LTC) ETF is due for a decision by Monday, May 05, according to an analyst.

Taking to X, James Seyffart, the analyst specializing in exchange-traded funds (ETFs), noted that the U.S. Securities and Exchange Commission (SEC) had not yet delayed this application, although it could get delayed on Monday.

"Still no word from the SEC on the Canary Capital Litecoin ETF (LIT). It’s due for a decision by Monday. It’s the last application on the list to be applied for and approved (BTC on 8/24, ETH on 3/21, and LIT on 4/25). So, LTC has a good chance for an early approval," he wrote.

Earlier this month, the SEC approved applications for the iShares (ticker: IVE ) Bitcoin (BTC) ETF and the Invesco (ticker: IVC) Ether (ETH) ETFs.

These approvals came after a series of setbacks for crypto ETFs in 2024.

Litecoin faces rejection at key Fibonacci retracement level

The 1-day chart revealed that Litecoin had a bearish swing structure, despite its bounce from $63 in April. The $96.5 swing high must be breached to turn the structure around. However, the lower timeframe structure was bullish, and the D1 Awesome Oscillator also highlighted upward momentum.

And yet, the A/D showed that buying pressure had been weak over the past month. This was not good news for investors.

Furthermore, the $89.3-level represented the 78.6% Fibonacci retracement level.

LTC bulls faced rejection from this level a few days ago, and the price appeared to form a short-term range from $83.3 to $88.8. The weak demand meant that a rejection from $90 was more likely than a bullish breakout.

The 2-week liquidation heatmap underlined the $80.3 and $91.4 regions as the nearby magnetic zones that could attract the price towards themselves. The $91.4-level was closer at press time, making it slightly more feasible as a target.

In the coming days, the range formation is likely to remain in place. The lack of bullish conviction, combined with the liquidation levels highlighted by the chart above, suggested that Litecoin will likely sweep both levels before embarking on its next impulse move.