Litecoin Shows Bullish Signs Amid Market Volatility
Litecoin (LTC) is trading near $130 as of Friday. The digital currency has risen for two days in a row. It has resisted market ups and downs, profit-taking, and bearish trends in crypto.
Rising Demand for Litecoin Futures
Demand for Litecoin derivatives is growing. Open Interest (OI) in LTC futures rose to about $1.11 billion on Friday. This is up from $795 million on October 1. OI measures the total value of active futures contracts. The increase suggests more bullish sentiment for LTC.
Higher OI shows investors believe LTC’s price can keep rising soon. This boosts their willingness to take risks and adds buying pressure.
However, the OI-weighted funding rate dropped to 0.0142% after reaching 0.0175% earlier. This means more traders are betting against LTC by opening short positions. It signals caution about a strong price rise above $130 in the short term.
Technical Analysis: Litecoin Faces Key Resistance
Litecoin’s Relative Strength Index (RSI) jumped to 72, indicating strong short-term momentum. The Moving Average Convergence Divergence (MACD) also supports a continued uptrend. Since October 1, the MACD has shown a buy signal with green histogram bars.
A daily close above $130 would confirm the uptrend. But the high RSI suggests the market may be overbought. This could lead to price corrections soon.
Litecoin is testing a double-top pattern near $130. This pattern acts as strong resistance. If LTC fails to break this level, profit-taking may increase, causing selling pressure.
Key price levels to watch are:
- Support at $130 (also the double-top level)
- Resistance at $135
- Demand zone near $125 (tested on October 3)
