Litecoin (LTC) experienced a significant pullback last month, erasing initial gains after reaching a low in April. While the price of Litecoin has fallen by nearly 20% since its peak in May, it’s worth noting that this decline mirrors trends observed in other altcoins like Cardano (ADA) and Chainlink (LINK). However, this price drop seems to be countered by increasing odds for a Litecoin ETF approval. The probability has jumped to 76%, primarily driven by the fact that the SEC has already approved Bitcoin ETFs. Given its proof-of-work nature similar to Bitcoin’s, LTC shares some similarities and suggests it’s more likely to receive approval than other cryptocurrencies. An LTC ETF approval would attract significant inflows from American investors. Another contributing factor is the continued accumulation of Litecoin by large whales. Santiment data reveals a growing trend in holdings amongst those holding between 100,000 to 1 million tokens, jumping from 25.8 million on April 15th to 27.8 million today. Additionally, social dominance has been increasing for Litecoin in recent days, signifying greater attention and adoption across various social media platforms. 84 million LTC coins are available compared to Bitcoin’s 21 million, leading some analysts to believe the SEC will be more inclined to approve the LTC ETF. The technical analysis further supports this trend. The daily chart depicts a price drop from $63.30 in April to $106.72 before rebounding during the crypto market rally. However, the price has subsequently slipped below the 50-day and 200-day Exponential Moving Averages, indicating a possible bearish influence. However, the Litecoin price is now forming a bullish flag pattern on its chart. This pattern involves a vertical line starting at $63.29 and ending at $106.72, currently forming the descending channel. It suggests that the coin will rebound, targeting the resistance at $106.7, which represents an increase of 25% compared to the current price. If Litecoin surpasses this resistance, it may reach a peak of around $140, reflecting the highs seen in January and February this year.