Litecoin has a chance to bounce back thanks to the wave of interest from institutional and retail investors.

Litecoin (LTC) is becoming the center of attention for both institutional investors and retail traders, after a strong influx of capital into ETF funds — a clear sign that market confidence is returning.

According to data from SoSoValue, Litecoin's spot ETF funds recorded a net inflow of up to 855,880 USD on November 3, marking one of the strongest daily increases in the past few weeks.

Notably, the trading volume of LTC is surpassing Zcash (ZEC) — an altcoin that once had a remarkable growth period. With the growing interest from investors, the question arises: can Litecoin recover in the near future?

Institutional capital strengthens the position of Litecoin

The activity of ETF funds has long been regarded as a reliable measure, reflecting the level of confidence of institutional investors in the market. The recent influx of capital shows that professional investors are gradually shifting their funds towards Litecoin, even as the overall market trend shows signs of weakening.

Notably, the total transaction value reached 1.07 million USD, while the price differential (premium) remained stable around the net asset value (NAV) — a sign of sustained interest and long-term confidence from investors in LTC.

Source: SoSoValue## Demand from retail investors has also surged.

Not only large organizations, but individual investors are also showing clear interest in Litecoin.

The number of active addresses and trading volume in the spot market (Spot) have maintained a steady upward trend in recent sessions, while the open interest (OI) in the futures market (Futures) continues to rise.

Data shows that Litecoin is outperforming most other coins in its group in terms of daily transactions and wallet activity. Notably, it even surpassed Zcash (ZEC) — a coin that had seen a strong price increase recently.

Source: TradingViewThe convergence of capital flows from both institutional and retail investors is a noteworthy signal, as history shows that when these two forces are “in sync,” the upward price trend tends to be more sustainable.

Litecoin Price Outlook: Accumulating for a Breakout?

Currently, the price of Litecoin (LTC) is still fluctuating in the accumulation range of 85–100 USD, as selling pressure gradually weakens. The Stochastic RSI indicator has bounced back from the oversold zone, reflecting that the downtrend is losing momentum and the bulls are beginning to regain balance.

Source: TradingViewHowever, the next direction of LTC still largely depends on the flow of ETF funds and market sentiment. If the capital continues to flow strongly into the ETF and retail investors maintain their confidence, LTC could completely test the resistance level of 105 USD in the short term.

Nevertheless, traders still need to exercise caution. A sudden drop in trading volume or a strong wave of profit-taking can cause prices to reverse, prolonging the accumulation phase before a real breakout occurs.

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