Litecoin accelerates after the bounce from the 90 USD zone

Litecoin (LTC) has risen to the sky by 10% in less than 72 hours after bouncing up from the important support zone – where the strong bridge zone and the upward trend line intersect.

The price zone around the 90 USD mark plays a particularly important role, as it gathers both the support trend line and the bridge that has previously attracted strong buying power.

The aforementioned trend line has recorded three rejections since April 7th. Each time it was tested, there was a strong bullish reaction, and the price bounce this week is no exception.

In summary, this strong bounce coincides with the wave of optimistic sentiment returning across the altcoin market, establishing a more positive context for the recovery of LTC.

Source: TradingView## OI rises to the sky reinforces the price increase of Litecoin

At the same time, the Open Interest index (OI) of Litecoin in the futures market also rose to the sky by 13%, from 604 million USD to 685 million USD.

Essentially, OI reflects the total value of open futures contracts and is an indicator of the level of activity as well as the growing interest of traders.

The rise in LTC price along with OI indicates that new capital is truly flowing into the market, not just the closing of Short positions. This, along with positive on-chain data, further strengthens confidence in a sustainable upward trend.

Source: CoinGlass## All eyes are on the 110 USD mark

With a clear upward trend established, Litecoin is approaching the psychological resistance zone of 110 USD – a price point that has played a key role in previous fluctuations. A successful breakout of this level could pave the way for a continued rise in the short term.

However, traders and investors need to closely monitor trading volumes and bearish divergence signals on momentum indicators. If buying pressure weakens, LTC may struggle and get stuck around the 110 USD mark.

Nevertheless, the combination of the bounce from the support zone and the rise of OI is creating a positive outlook. If the current upward momentum continues to be maintained, Litecoin could completely break through the resistance level of 110 USD in the near future.

At the time of writing, data from Bitcoin Magazine shows that the price of LTC is approaching the $100 mark, up slightly by 1% in the last 24 hours.

Itadori