Litecoin: One more roadblock to $130-level
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Clearance of the $115-level could help LTC hit $130
- Open Interest rates have surged since the end of June
Litecoin [LTC] investors had an impressive June following a massive rally. LTC hiked from $72 in mid-June and extended the trend to July, hitting $115 at the time of writing. That’s an over 55% hike in less than three weeks.
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With only 30 days to Litecoin’s halving, scheduled for 3 August 2023, the event is expected to impact its network and price significantly. It will reduce the current block reward for miners from 12.5 LTC to 6.25 LTC, cushioning inflation and potentially propping LTC’s value.
Is an upswing to $130 likely?
Already LTC has seen massive value appreciation a month before the halving event. However, the price has now hit the $115-obstacle. The hurdle was also the price ceiling in the second half of April 2022.
However, the key technical indicators have been positive. For example, the RSI (Relative Strength Index) hit the overbought zone while the OBV (On Balance Volume) has increased since mid-March. It is a sign of increased buying pressure and demand.
Furthermore, the ADX (Average Directional Index) was above 20, denoting a solid uptrend on the higher timeframe. Collectively, it reinforces the long-term bullish bias so, LTC could clear the $115-zone and target the $134-resistance level. A pullback retest at $102 could set LTC to clear the $115-level.
A breach below the $100-mark will weaken the higher timeframe market structure and invalidate the bullish thesis. Such a breach could make a retracement to $90 or $85 likely.
Open Interest rates surged
The transition from Q2 to Q3 was marked by a sharp uptick in Open Interest rates for LTC. On 30 June, the OI was about $300 million but jumped to >$600 million at the time of writing. That’s more than double in demand in three days – AA bullish cue.
How much are 1,10,100 LTCs worth today?
In addition, about $3.5 million worth of short positions have been wrecked in the past 24 hours. In the same period, long positions only lost $1.2 million, underscoring the bullish sentiment in the Futures market.
Nevertheless, LTC’s uptrend could derail if BTC drops below $30k, thus it’s worth tracking the king coin’s price action.