Key Insights:
- Litecoin price prediction turns bearish as the U.S. Securities and Exchange Commission postpones the ETF proposal.
- Litecoin (LTC) recently broke an ascending trendline and is now at a critical make-or-break level.
- Price action suggests that a daily candle closing below $81 could trigger a sharp sell-off.
Amid market uncertainty, a Litecoin price prediction seems essential to discuss, as the US SEC delays the spot ETF proposal and the asset breaks its key support. On May 7, 2025, following a 4.5% price decline, LTC has reached a make-or-break level.
Current Price Momentum
At press time, LTC was trading near $84, having registered a price decline of over 4.5% in the past 24 hours. This drop has attracted the attention of investors and traders, leading to a surge in trading volume.
Data from CoinMarketCap reveals that LTC’s 24-hour trading volume has increased by 11%, indicating a rise in participation, either due to fear of a further price decline or as investors take advantage of the dip to buy at lower levels.
Litecoin (LTC) Price Action & Key Levels
According to expert technical analysis, the Litecoin price prediction for the coming days appears bearish, as LTC has broken its key support from an ascending trendline. On the daily chart, the LTC price seems to be retesting the breakdown level.
Litecoin Price Prediction
Based on recent price action and historical patterns, if the LTC price continues to fall and closes a daily or four-hour candle below the $80 level, the Litecoin price prediction suggests the asset could experience a 20% decline, reaching the next support level at $62.50.
However, a bullish outlook for Litecoin would only be valid if the LTC price successfully breaks the resistance level at $90.50 and closes a daily candle above it. If this happens, the bearish sentiment could shift, and the LTC price may surge by over 20%, potentially reaching the $110 level.
With the ongoing price correction, LTC’s Relative Strength Index (RSI) at 46.50 indicates that the asset is currently in neutral territory, neither overbought (above 70) nor oversold (below 30). An RSI around 46.50 typically suggests that the market structure is unclear, with momentum slightly bearish, but it could depend on upcoming buying or selling pressure.
US SEC Delays Litecoin ETF Proposal
Litecoin’s bearish price action is further supported by the US SEC’s decision to postpone the Canary Funds Litecoin ETF proposal. The regulator is now seeking public comments, focusing on whether the ETF meets key standards, particularly those related to fraud prevention and market manipulation.
With the SEC’s decision, Nate Geraci, the President of the ETF Store, noted,
“Wouldn’t read too much into SEC delaying decision on Canary’s spot litecoin ETF… New SEC commissioner just sworn in two weeks ago. Has to get feet wet. Still think vast majority of existing crypto ETF filings will be approved before year-end, if not sooner.”
Expert Insights & Whale Activity
Despite the bearish price action, a crypto expert shared a post on X, noting, ‘LTC is getting ready to soar.’ The post also mentioned that the asset is currently at a support level of $81, and there is a strong possibility it could soar to the $148 level in the coming days.
However, whales and institutions seem to be abandoning LTC, as reported by the on-chain analytics firm IntoTheBlock. Data reveals that whale transactions worth $1 Million to $10 Million have significantly dropped by 82.15%, indicating a fading interest and confidence in the token amid bearish sentiment.
When combining all these factors, it appears that $80 is a key level. If LTC sustains this level, it could soar significantly; otherwise, it will face a price crash.