Litecoin (LTC) has taken center stage in the altcoin market in recent days as rumors of potential institutional interest in the Litecoin spot ETF sent prices up 10%.

The recent announcement by Coinbase Derivatives that it will launch futures contracts for Litecoin, Dogecoin (DOGE) and Bitcoin Cash (BCH) on April 1, 2024 has further increased the excitement around Litecoin's potential as an investment vehicle.

The Commodity Futures Trading Commission's (CFTC) classification of Litecoin as a commodity in its lawsuit against KuCoin has bolstered the legitimacy of the debate surrounding Litecoin's regulatory status. This classification highlights the CFTC's view of some cryptocurrencies as commodities, which could bode well for approval of the Litecoin spot ETF.

Crypto analyst Luke Martin echoed this sentiment, suggesting that the approval of an Ethereum ETF could pave the way for other “legacy altcoins” such as Litecoin.

Despite the current interest in Litecoin, its price remains 77% below its all-time high in May 2021. However, a recent break above the 200-week exponential moving average (EMA) has sparked a glimmer of bullish momentum. Breaking the resistance zone between $102 and $106 could be crucial for Litecoin to reach new highs, with $128 (0.236 Fib retracement level) being a potential near-term target.

As the market eagerly awaits further developments regarding a potential Litecoin spot ETF, the cryptocurrency faces critical resistance levels at $100, $105.7 and $115, with support levels at $95, $91 and $85.5.