Litecoin price is poised for a potential 10% recovery following a crash, as Grayscale takes steps to convert its LTC trust into an ETF.

FUNDAMENTAL OVERVIEW:

• On Wednesday, Litecoin experienced a significant drop of nearly 20%, pushing the altcoin below the $70 threshold.
• Grayscale had previously mentioned its potential to convert trusts into ETFs, contingent on the SEC’s approval of GBTC conversion.
• Approval of Grayscale’s spot Bitcoin ETF by the SEC would also equalize the landscape for spot and futures ETFs.

Litecoin may enter the spot ETF competition, potentially sooner rather than later, not due to Grayscale’s desire but its capability. The CEO of the asset manager maintains this perspective, and overcoming challenges faced with the SEC in attempting to convert the Grayscale Bitcoin Trust (GBTC) into a spot ETF suggests the possibility for Litecoin.

Almost two years ago, Grayscale’s CEO, predicted that the approval of GBTC would set the stage for the firm to eventually convert its trusts into exchange-traded funds (ETFs). Since that time, the asset manager has made significant progress, and the Securities and Exchange Commission (SEC) is set to announce its decision on the GBTC to spot ETF conversion filing within the next five days.

Despite a 10% decline in Litecoin price on Wednesday due to Matrix port FUD, it failed to alter the prevailing bearish trend observed throughout 2023. Over the past year, LTC has demonstrated minimal growth, unlike several other top cryptocurrencies, such as Bitcoin, which experienced over 100% increases.

This renders LTC a challenging asset to present to institutional investors, who have displayed greater interest in alternative assets like Solana, Cardano, and Ripple (XRP).

LITECOIN TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Litecoin is currently trading within a down channel.

Litecoin is positioned below all the Moving Averages (SMA).

The Relative Strength Index (RSI) is in the Selling zone, while the Stochastic oscillator suggests a Negative trend.

Immediate Resistance level: 68.01

Immediate support level: 64.89

HOW TO TRADE LITECOIN

After experiencing a notable surge, Litecoin encountered resistance, leading to the formation of a head and shoulders pattern, resulting in a decline. Currently, the price is hovering around a significant support zone, and a breach of this zone may indicate further downside potential.

TRADE SUGGESTION- STOP SELL– 63.97, TAKE PROFIT AT- 60.92, SL AT- 66.38.