- Litecoin found favor with Fidelity Digital, after getting added to its portfolio
- Update could have implications for LTC’s price action in the short term
Litecoin has been overshadowed by more popular coins like Ethereum and Bitcoin and this is evident from its recent performances. However, its fortunes might soon change courtesy of Fidelity Digital’s latest moves.
On Friday, Litecoin confirmed that Fidelity Digital has added LTC to its portfolio of digital product offerings. This is an important development which will allow Fidelity clients in the U.S to gain exposure to Litecoin. This includes institutional investors. At the moment, the company manages assets worth over $12 trillion.
The addition of Litecoin into Fidelity Digital’s portfolio confirms optimism about the cryptocurrency’s future.
Paving the road for a Litecoin ETF?
Fidelity Digital’s addition of LTC into its portfolio raises speculation regarding the possibility of a Litecoin ETF in the future. Bitcoin ETFs have been receiving billions in inflows and ETH ETFs were recently approved too.
Litecoin meets the criteria of assets that are similar to BTC, such as scarcity and proof-of-work consensus algorithm. Worth pointing out though that Fidelity Digital did not hint at the possibility of a Litecoin ETF any time soon.
Regardless, its spotlight on the cryptocurrency might be a stepping stone in that direction, if strong institutional demand makes a comeback.
Will Litecoin reclaim the $100 price level?
LTC managed to briefly push above $100 in March 2024. It peaked at $112.83 at the start of April, before recording a 49% discount which saw it bottom out at $56.62.
The cryptocurrency was trading at $73.33, at the time of writing.
Source: TradingView
Simply put, LTC has some ground to cover before pushing back above the illusive $100 price level.
Even so, both its RSI and MACD indicators confirmed bullish momentum. Can it maintain this momentum though? Well the latest longs versus shorts data revealed that shorts dropped by 145,540 while the net longs count was 44,055.
Source: HyblockCapital
The dip in the number of shorts signals a sentiment change. At press time though, it was not immediately clear whether this had anything to do with the announcement about Fidelity Digital adding LTC to its portfolio.
Hashrate soars to new 3-month high
Litecoin’s hashrate recorded a noteworthy spike in the last 2 days too, resulting in a push to a new 3-month high of 1.179 PH/s. This uptick also brought it closer to a new 6-month high on the charts.
Source: CoinWarz
The aforementioned spike aligns with the observed market sentiment shift and rise in Litecoin transactions, especially as the market eased into a bullish mood.
All these observations suggest that Litecoin has a chance at a bullish recovery. However, its ability to push back above the $100-level in the short term will depend on the level of demand present in the market.
Credit: Source link