Litecoin (LTC) showed a V-shaped recovery of 20% after falling to $106 on February 25. After briefly falling below the 50-day and 100-day exponential moving average (EMA), the altcoin has regained bullish ground and is currently outperforming most assets in the cryptocurrency market.
Litecoin 1-hour chart. Source: Cointelegraph/TradingView
Litecoin has ‘one of the best charts in cryptocurrency’
Litecoin’s current performance suggests it is experiencing asymmetric growth relative to the broader cryptocurrency market, with most LTC futures traders maintaining a clear directional bias. Data highlights a clear trend with LTC open interest consistently peaking at $140.
Litecoin open interest rate, funding rate and liquidation chart. Source: Velo.data
During the latest LTC adjustment, open interest dropped from $885 million to $525 million, a 40% decline from February 20-26. However, most of the OI decreased within the first three days. Over the past two days, the rate has remained unchanged during LTC withdrawals.
The last 24 hours have seen a piercing augment in OI of 10% as prices rise, which could mean novel long positions from traders. The augment in the funding rate further confirmed that there are now more dynamic long positions than miniature positions.
In delicate of this, Tyler, an anonymous cryptocurrency trader, he said that the altcoin presented “one of the best charts in cryptocurrency.”
This opinion was supported by Poseidon, a crypto analyst who predicted that Litecoin is heading for a novel record high of $300.
However, technical analyst Mihir believes that the long-term target could be even higher.
The analyst said
“LTC reached $350 in 2017 – a 310x move. During the 2020 bull run, it retested the 2017 high but failed to create a novel ATH. In the current bull run (2023-2025), the rate has not changed much yet, but indicates an upward move this year. If it exceeds $250, the price will be realistic 1000 USD.
Litecoin 1 month analysis by Mihir. Source: X.com
Related: M2 Money Supply Could Trigger Bitcoin’s ‘Parabolic’ Rally – Analyst
Overhead resistance remains at $140
As shown in the chart below, Litecoin’s weekly price action is showing strength, and a candle close above $133 will be the highest level since January 2022. However, over the past three months, the altcoin has failed to break its overall resistance at $140.
With supply side liquidity (yellow box) on the upside, LTC needs a weekly close above $133 to invalidate its resistance range.
Litecoin 1-week chart. Source: Cointelegraph/TradingView
Related: Bitcoin Sets New 3-Month Low as Analyst Expects to Recover 93.5K dollars “this week”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
