Litecoin (LTC) demonstrated a V-shaped recovery of 20% after dropping to $106 on Feb. 25. After a brief decline below the 50-day and 100-day exponential moving averages (EMAs), the altcoin has regained a bullish position and is currently outperforming a majority of assets within the crypto market.
Litecoin 1-hour chart. Source: Cointelegraph/TradingView
Litecoin has “one of the best charts in crypto”
Litecoin’s current performance implies it is on an asymmetric rally versus the wider crypto market, and most LTC futures traders maintain a clear directional bias. Data highlights a clear trend where LTC’s open interest has consistently peaked at $140.
Litecoin open interest, funding rate and liquidation chart. Source: Velo.data
During LTC’s recent correction, its open interest dropped from $885 million to $525 million, which is a 40% drop between Feb. 20 and Feb. 26. However, a majority of the OI declined within the first three days. It remained flat during LTC’s drawdown in the past two days.
In the past 24 hours, a flash OI spike of 10% was observed alongside a price rise, which might imply fresh long positions from traders. The rise in the funding rate further confirmed that more longs were currently active than shorts.
In light of that, Tyler, an anonymous crypto trader, said that the altcoin presented “one of the best charts in crypto.”
The sentiment was followed up by Poseidon, a crypto analyst who predicted that Litecoin is targeting a new all-time high at $300.
However, a technical analyst, Mihir, believed the long-term target could be even higher.
The analyst said,
“LTC hit $350 USD during 2017 — a 310x move. It retested the 2017 high during the 2020 bull run but failed to make a new ATH. In the current (2023-2025) bull run, it hasn’t moved much yet, but it is indicating an upside move this year. If it breaks above $250 USD, then $1,000 is feasible.”
Litecoin 1-month analysis by Mihir. Source: X.com
Related: M2 money supply could trigger a ‘parabolic’ Bitcoin rally — Analyst
Overhead resistance hangs at $140
As illustrated in the chart below, Litecoin’s weekly price action is exhibiting strength, and a candle close above $133 will mark its highest level since January 2022. However, the altcoin has failed to break above its overhead resistance at $140 over the past three months.
With supply-side liquidity (yellow box) available 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 eyes $93.5K reclaim ‘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.
