Litecoin (LTC) Price is Bullish Based on This Analysis

Bittime - Litecoin (LTC) bullish analysis suggests a potential price increase to $150, supported by a surge in social activity and open interest in futures.

Litecoin (LTC) Performance Recently

Litecoin is currently showing strong bullish potential after successfully breaking through the resistance level around $137 to $140, which was previously a rejection point. 

Support is seen at the lower trend line around $130, which prevents further declines. If LTC is able to break above $140, bullish momentum could push the price towards $150 or higher. 

However, if the price experiences rejection, there is a risk of a fall back to the $120 level. Moderate trading volume, recorded at 2.01 million, indicated cautious market participation despite historical patterns often pointing to a decline.

Social Activity and LTC Trading Volume Increase

Litecoin's social activity also increased rapidly, with its share of social activity reaching 1.9%, the highest ever recorded. This increase reflects increased interest from investors, with LTC price jumped 104.52% to reach $136.17, in line with the surge in social activity. 

Litecoin social activity source: ThecoinRepublic/LunarCrush Analytics/X

Trading volume also experienced a significant jump of 595.4%, reaching $1.63 billion, indicating increased market engagement. If social dominance continues to increase, LTC has the potential to break the resistance at $140 and attract more buyers.

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Surge Of Interest In Litecoin Futures

Open interest in Litecoin futures also hit a four-year high, reaching $758 million. This surge reflects strong speculative interest and increased market activity, with the price of LTC reaching $136.17 and experiencing a rise of 104.52%. 

Exchange LTC futures open interest source: ThecoinRepublic/Coinglass

This increase indicates that traders are expecting further price movement, especially in testing resistance at the $140 level. 

However, if excessive leverage occurs, this could trigger liquidations and cause a correction towards the $130 level.

Read too How to Buy Litecoin (LTC)

Short Liquidation Reward

Data shows that liquidation of short Litecoin positions is higher than long positions, which indicates a short squeeze. When LTC reached the price of $134.9, there was a liquidation of 1.72 million short positions.

Short positions experienced aggressive liquidation in the $134.6 to $137 price range, forcing traders to buy back and increasing LTC's upward momentum to $136.17.

Overall, with increasing social interest and trading activity as well as growing open interest in futures, Litecoin is in a strong position to continue its bullish run if it can maintain key support levels and break through existing resistance.

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Litecoin (LTC) Price FAQs

1. What influences the current price of Litecoin?

Litecoin prices are influenced by resistance and support levels, increased social activity, and record-high open interest in futures.

2. What does the surge in social activity mean for LTC?

The spike in social activity indicates high investor interest, which could push LTC prices higher if this trend continues.

3. How does liquidation of short positions impact the price of LTC?

Liquidating short positions can lead to a short squeeze, pushing LTC prices up faster, especially if many traders are forced to buy back their positions.

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Reference

Lennox Gitonga, Litecoin Going For Breakout, Open Interest, Social Activity Surge, Accessed February 24, 2025

Author: IN