Could the price of Litecoin reach 150 dollars in the context of increasing institutional attention?

The price of Litecoin has become the center of attention this week, thanks to the statements of its founder, Charlie Lee. This year, Lee has been actively involved in activities related to Litecoin, and attention from the global financial community has risen significantly.

Interest in Litecoin, particularly from institutional investors, has risen in recent weeks. The NASDAQ-listed pharmaceutical giant, Mei Pharma, is reported to have purchased over $100 million in LTC. Notably, this company chose LTC over top coins like Bitcoin and Ethereum. This event marks one of the first instances confirming demand from businesses for LTC. However, that's not all.

In a recent interview, Lee revealed that nearly a dozen financial companies have expressed interest in Litecoin, most of which operate outside of the United States. The founder of Litecoin has also made strong statements about LTC as a means of transaction, emphasizing that Litecoin can compete with stablecoins in terms of transaction efficiency.

Hope for Litecoin ETF approval

The increasing attractiveness of Litecoin in the institutional investment community may signal exciting times ahead for LTC. The rising demand for access to LTC from institutions has shifted attention to the potential approval of a Litecoin ETF.

Interestingly, at least three applications for a Litecoin ETF are pending from major issuers, including CoinShares, Grayscale Investments, and Canary Capital, which have been submitted to the U.S. Securities and Exchange Commission (SEC) over the past few months.

The market is currently optimistic about the likelihood of approval before the end of the year. Recent developments, including a large purchase of Litecoin by Mei Pharma, may have positively influenced the probability of approval.

The probability of Litecoin ETF approval before the end of 2025 has risen from 65% at the end of July to 83% in the past 24 hours.

The approval rate of the Litecoin ETF | Source: PolymarketThe approval of the Litecoin ETF could trigger a wave of large institutional liquidity flowing into the cryptocurrency market.

Summary of Litecoin price movements

The optimism surrounding the price of Litecoin has clearly manifested in its recent movements. LTC reached a high of $129 on Tuesday, equivalent to a rise of 25% since the beginning of August.

Currently, the price of LTC is trading at $122.48, rising 3.39% in the past 24 hours. However, there is another important observation that may affect its movement in the coming days.

This cryptocurrency has formed a bearish divergence with the RSI indicator, signaling a potential correction that may occur.

Litecoin Price Volatility | Source: TradingViewThis bearish divergence may indicate that another correction could be imminent. Meanwhile, whale activity shows low selling pressure and the trend is leaning towards buyers.

This suggests that there is a high possibility that LTC can maintain upward momentum towards $140, a historical resistance level. Previously, LTC struggled to maintain an upward trend, with the price being capped below $100 from March to June. However, the recent price rise in July and August has been supported by a strong increase in trading volume.

To compare, the volume of LTC in the derivatives segment has risen to $3.95 billion on August 6. The last time the daily trading volume surpassed this level was on December 3.

Litecoin volume | Source: CoinglassOpen interest has also reached a new all-time high of 1.14 billion dollars on August 6. This rise indicates increasing demand in the derivatives market segment, which could suggest higher volatility for LTC price movements in the future.

Mr. Giáo