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Litecoin ‘Golden Cross’ That Preceded 200% Price Boom in 2020 Returns in Trump Era

By:
Yashu Gola
Published: Feb 21, 2025, 07:32 GMT+00:00

Key Points:

  • Litecoin golden cross indicates bullish continuation after its 175% rebound.
  • An ascending triangle pattern at the current top furthers the upside outlook.
  • The potential approval and launch of Litecoin ETFs in the US are acting as tailwinds to the bullish technicals.
Litecoin ‘Golden Cross’ That Preceded 200% Price Boom in 2020 Returns in Trump Era
In this article:

Litecoin (LTC) has surged by over 175% in the last five months to reach approximately $140 in February 2025, primarily due to Donald Trump’s reelection as the US president.

In doing so, the cryptocurrency has printed its first Golden Cross in over four years, suggesting further upsides in the future.

Golden Cross Signals Long-Term Litecoin Price Uptrend

Last week, Litecoin’s 50-day Exponential Moving Average (EMA) crossed above the 200-day EMA, forming a Golden Cross, a historically bullish signal that last appeared in December 2020—before LTC surged over 200% in the following months.

LTC/USD weekly price chart
LTC/USD weekly price chart. Source: TradingView

Accompanying this signal is an ascending triangle breakout, a structure characterized by higher lows and a flat resistance level, which Litecoin breached at $115. The breakout is reinforced by a spike in trading volume (2.27 million LTC traded this week), indicating strong market conviction.

Technical projections suggest that if momentum holds, LTC could target the 0.382 Fibonacci level at $185, with further upside toward $200–$230. However, Relative Strength Index (RSI) readings at 66.22 indicate that Litecoin is approaching overbought conditions, raising the risk of a near-term pullback.

Litecoin ETF Speculation Adds to Momentum

Adding fuel to Litecoin’s rally is growing speculation over a potential U.S.-approved Litecoin Exchange-Traded Fund (ETF).

  • The SEC recently acknowledged a rule change for listing the CoinShares Spot Litecoin ETF on Nasdaq.
  • Canary Capital’s Litecoin ETF appeared on the DTCC system under the ticker LTCC, a crucial preparatory step.
  • Bloomberg analyst Eric Balchunas estimates a 90% chance of ETF approval in 2025.

The speculation has translated into aggressive buying pressure—Litecoin’s market cap surged 46% between February 2 and February 19, outpacing Bitcoin and the broader crypto market’s 42% gain since early November 2024. Following the DTCC listing news, LTC spiked 8.5% intraday, briefly testing $138.

Network fundamentals are also strengthening. Daily transaction volume has climbed to $9.6 billion, a 243% increase over five months, as investor interest and adoption grow.

Litecoin on-chain volume
Litecoin on-chain volume (in US dollars). Source: Santiment

This spike in activity signals heightened network demand, reinforcing Litecoin’s bullish momentum.

Will LTC Price Hit $200?

The next major resistance lies between $185 and $200, aligning with Fibonacci retracement levels and historical price ceilings. However, the rally faces potential hurdles:

  1. RSI approaching overbought territory raises the risk of a short-term correction toward $120–$125.
  2. Regulatory uncertainty surrounding ETF approvals could disrupt momentum if the SEC delays or rejects applications.
  3. Macro factors such as broader crypto market corrections or liquidity shifts could dampen bullish sentiment.

For now, Litecoin’s bullish breakout remains intact, with traders watching closely to see if it can extend gains toward $200—or face profit-taking pressure in the near term.

About the Author

Yashu Gola is a crypto journalist and analyst with expertise in digital assets, blockchain, and macroeconomics. He provides in-depth market analysis, technical chart patterns, and insights on global economic impacts. His work bridges traditional finance and crypto, offering actionable advice and educational content. Passionate about blockchain's role in finance, he studies behavioral finance to predict memecoin trends.

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