- Litecoin gained favor after being added to Fidelity Digital’s portfolio.
- The update may impact LTC price movements in the short term.
Litecoin has been overshadowed by more popular coins like Ethereum and Bitcoin, and this is evident in its recent performance. However, recent moves by Fidelity Digital suggest that its fortunes may soon change.
On Friday, Litecoin confirmed that Fidelity Digital had added LTC to its portfolio of digital products. This is a significant development that will allow Fidelity clients in the US to gain exposure to Litecoin. This includes institutional investors. The company currently manages over $12 trillion in assets.
The addition of Litecoin to Fidelity Digital’s portfolio confirms optimism about the future of this cryptocurrency.
Paving the way for a Litecoin ETF?
Fidelity Digital’s addition of LTC to its portfolio has sparked speculation about a future Litecoin ETF. Bitcoin ETFs have seen billions of dollars in inflows and an ETH ETF was also recently approved.
Litecoin meets similar asset criteria as BTC, such as scarcity and proof-of-work consensus algorithm. However, it is worth noting that Fidelity Digital has not hinted at the possibility of a Litecoin ETF anytime soon.
Nonetheless, if strong institutional demand returns, focusing on cryptocurrencies could be a stepping stone in that direction.
Can Litecoin Recover $100?
LTC briefly surpassed $100 in March 2024. It peaked at $112.83 in early April before falling 49% to bottom at $56.62.
At the time of writing, the cryptocurrency was trading at $73.33.
Source: TradingView
Simply put, LTC has some hurdles to overcome before it can break the incredible $100 price level.
Nevertheless, both RSI and MACD indicators have confirmed bullish momentum. But can this momentum be maintained? Well, the latest long vs short data shows that shorts have decreased by 145,540, while net longs are at 44,055.
Source: HyblockCapital
The decline in short positions indicates a change in sentiment, but it was not immediately clear at the time of writing whether this was related to Fidelity Digital’s announcement that it was adding LTC to its portfolio.
Hashrate hits 3-month high
Litecoin’s hashrate has also seen a notable surge over the past two days, rising to a new three-month high of 1.179 PH/s. This rise also brought it close to a new six-month high on the chart.
Source: CoinWarz
The aforementioned surge coincides with the observed change in market sentiment and the increase in Litecoin trading volume, especially as the market eases into a bullish mood.
All these observations suggest that Litecoin has a chance for a bullish recovery. However, its ability to break above the $100 level again in the short term will depend on the level of demand present in the market.