Litecoin Surges 1.6% Amid Market Turmoil and ETF Optimism

Litecoin (LTC) bounced back from early losses on Tuesday, closing the day with a 1.6% gain at $84.88 after dipping to a low of $82.69. The recovery came despite broader market turbulence driven by rising geopolitical tensions in the Middle East. Concerns over a potential U.S. military response to the Israel-Iran conflict pushed market volatility higher, with Polymarket traders pricing in a 62% chance of U.S. intervention by month-end.

Digital assets reacted sharply to the macro uncertainty, but Litecoin stood out with strong resilience. According to CoinDesk Research’s technical analysis, LTC reclaimed ground near the $85.60 resistance zone, demonstrating bullish momentum. The price action formed an ascending channel marked by higher lows—often a sign of positive investor sentiment and strengthening buying pressure.

Traders are now closely watching the U.S. SEC’s review of pending spot Litecoin ETF applications. Sentiment remains upbeat, with Polymarket data showing a 76% probability of approval this year. This optimism is adding fuel to Litecoin’s price resilience, especially as institutional interest in altcoin ETFs continues to grow.

Technical indicators highlight a solid support base between $83.48 and $83.57, where buy volume picked up significantly. While resistance at $85.60–$85.67 capped intraday gains, repeated tests of that range suggest mounting pressure for a breakout if market conditions stabilize.

While the CoinDesk 20 Index fell 0.5% over the same period, Litecoin’s performance signals strong investor confidence, underpinned by favorable technicals and ETF-driven speculation. As market participants brace for further geopolitical developments, Litecoin’s ability to hold key levels may determine its short-term trajectory.