Key Insights
- Litecoin Open Interest (OI) surges to a 4-year high.
- LTC price gains bullish momentum near the resistance zone.
Since December, the price of Litecoin (LTC) has been battling in a parallel channel. The price of Litecoin has been under selling pressure in the resistance zone three times since December.
However, the price has once again gotten close to this area. The price recently increased by 6% in a single day, which may draw in more sellers.
Litecoin Price Gains Momentum in Resistance Zone: Breakout Ahead?
When writing, Litecoin crypto was trading at $135.17 which has surged by 3.16% over the past 24 hours. The market capitalization was $86.92 Billion and the 24-hour trading volume was $3.65 Billion.
The technical chart indicates that the price of LTC has been circling in a parallel channel. Buyers have recovered from the price’s mild selling near the resistance zone.
Buyers may lose faith if the price falls below the 20-day EMA. Sellers may pull the price to the $95 mark, which is the support level if the price remains below the 20-day EMA. LTC investors might lose about 20% of their money in this situation.
On the other hand, buyers might take control if the price recovers and leads to a breakout from the $140 resistance level.
There could be a significant move in price following a successful breakout from the $140 level.
An increase in trading volume could act as a catalyst, and this breakout could entice buyers. A robust bullish rally may be seen if the chart structure is successful in drawing in investors.
RSI has triggered a bullish crossover with the RSI-based moving average and staying over it. RSI suggests a bullish forecast.
Litecoin Open Interest at Peak
Despite the low volatility that has plagued the cryptocurrency market, LTC has managed to sustain strong activity, as seen by the price action of Litecoin. It is expected to be among the most active coins at the end of February.
Speaking of activity, the most recent increase in the price of Litecoin was consistent with the upward trajectory of derivatives activity.
On the last day, its open interest reached $915.72 Million. This was the greatest level it had reached in the previous four years.
The 2021 bull run was the last time that open interest in Litecoin futures was higher. This performance demonstrates that rising market activity and liquidity have coincided with increased interest in the cryptocurrency.
LTC Price Forecast: Factoring in Open Interest
Litecoin is at a critical juncture with its price currently testing the resistance zone around $140. The recent surge in open interest, reaching a four-year high, suggests a growing interest in Litecoin among investors, which could signify the potential for a breakout.
If the price surpasses this resistance, a strong bullish rally could follow, supported by increasing trading volume.
However, if selling pressure persists and the price falls below critical support levels, particularly the 20-day EMA, investors might face significant losses.
Overall, Litecoin’s market activity and technical indicators point towards an exciting period ahead, with a strong possibility of volatility and significant price movements shortly.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
