Litecoin (LTC) Shows Potential for Q4 2025 Rally Amid Positive Volume Shift and Possible ETF Approval

• Litecoin (LTC) has recently dipped below the $90 threshold, yet emerging market indicators and institutional interest hint at a promising Q4 2025 for the altcoin.

• The 90-day Spot Cumulative Volume Delta (CVD) turning positive signals renewed buying momentum, while anticipation of an LTC ETF approval could attract significant investor capital.

• According to COINOTAG sources, the convergence of seasonal trends and onchain data positions LTC for a potential breakout reminiscent of its 2024 rally.

Litecoin price dips under $90, but positive volume shifts and potential ETF approval set the stage for a strong Q4 2025 rally in LTC.

Spot Cumulative Volume Delta Signals Renewed Buying Interest in LTC

The recent flip of Litecoin’s 90-day Spot Cumulative Volume Delta (CVD) from negative to positive marks a significant shift in market dynamics. This metric, which measures the net buying pressure by comparing taker buy and sell volumes, indicates that buyers are increasingly dominating the market. After a prolonged period of subdued activity since December 2024, this positive CVD suggests that investors are accumulating LTC at current price levels, potentially setting the foundation for upward momentum.

Institutional Demand Could Surge with Potential LTC ETF Approval

Market analysts, including those cited by COINOTAG, highlight the growing likelihood of an LTC exchange-traded fund (ETF) receiving regulatory approval by October 2025. Bloomberg ETF analysts estimate a 95% probability of approval, which would be a pivotal development for Litecoin. An ETF listing would not only enhance liquidity but also open the doors for institutional investors who have been cautious due to regulatory uncertainties. This institutional influx could amplify LTC’s price action, especially when combined with favorable seasonal trends.

Seasonality Patterns Align with Positive Outlook for LTC in Q4 2025

Historical price data reveals that Litecoin typically experiences weaker performance during August and September, with average negative returns of 6.99% and 5.06%, respectively. However, this period of relative weakness is often followed by a robust recovery in Q4, particularly in November, which has historically yielded average returns near 95%. This seasonal pattern suggests that the current price dip could represent a strategic accumulation phase ahead of a strong year-end rally.

Technical Chart Patterns Mirror 2024’s Bullish Setup

Analyzing LTC’s daily price chart reveals a striking resemblance to its 2024 trajectory. The altcoin has been consolidating within a high-conviction demand zone, previously a launchpad for a breakout in late 2024. A decisive move above the descending trendline, coupled with reclaiming the 50-day and 200-day moving averages, would confirm a bullish reversal. Such technical validation often precedes significant price advances, reinforcing the case for a potential rally as Q4 2025 approaches.

Onchain Metrics Support Strategic Accumulation Narrative

Beyond volume and price action, onchain data underscores a shift in investor behavior. The positive Spot CVD aligns with increased taker buy activity, indicating that market participants are actively purchasing LTC rather than selling. This behavioral change is critical, as it reflects growing confidence among traders and long-term holders. When combined with the anticipated ETF approval and seasonal tailwinds, these onchain signals strengthen the outlook for LTC’s price appreciation.

Market Sentiment and Broader Crypto Trends

Litecoin’s potential resurgence is also influenced by broader cryptocurrency market trends. As Bitcoin and other major altcoins exhibit signs of stabilization and renewed interest, LTC stands to benefit from increased market liquidity and investor confidence. The altcoin’s historical correlation with Bitcoin’s performance suggests that positive momentum in the broader market could further catalyze LTC’s upward trajectory.

Conclusion

While Litecoin’s recent price dip below $90 may raise concerns, a confluence of positive Spot CVD readings, potential ETF approval, and strong seasonal patterns collectively point toward a favorable outlook for Q4 2025. Technical chart formations echoing last year’s successful breakout add further weight to this bullish thesis. Investors should monitor these key indicators closely, as current price levels may represent an opportune entry point ahead of a possible sustained rally.