Litecoin Open Interest Surges 100% to $761 Million as Price Rallies 4.53%

Litecoin (LTC) has recently gained significant momentum, setting a new record in open interest (OI) which climbed to $761 million in 24 hours. This surge in open interest indicates a growing number of traders entering the market and opening new positions, suggesting increased confidence in the future price trajectory of LTC. The open interest represents the number of contracts that have not been settled, and its rise often signals intense buying pressure and confidence in the upward trend.

With a market cap of $7.6 billion, Litecoin is now the 21st-largest cryptocurrency. The LTC price has shown a bullish outlook, overcoming key resistance levels and rallying 4.53% within the past day, with the price oscillating around $103.9. The rising open interest, alongside increasing prices, often signals intense buying pressure and confidence in the upward trend. As new long positions are created, traders anticipate the price to climb higher. Notably, LTC has crossed $101 and $102, which are critical levels as they could trigger a breakout or signal a potential pullback if selling pressure resumes.

Amid the latest price rally, the majority of LTC addresses are operating at a profit. Data revealed that 50.9 million LTC addresses, valued at $5.08 billion, are “in the money.” Most of the profit came from large holders, who represented 66.3% of the total addresses. However, 15.2% of LTC wallet addresses, approximately 11.77 million, were “out of the money” or at a loss. In monetary terms, it translates to $1.17 billion. The remaining 18.38% or 14.11 million Litecoin addresses neither profited nor recorded losses. The fact that LTC has more holders in profit suggests that investors remained confident in the coin’s future.

Discussions about LTC have increased due to its astronomical growth in the past few days. LTC price has emerged as a leading altcoin candidate for the next rally phase. Considering the improved sentiments, some analysts eye the $120 mark in the long term. However, the road to $120 depends on LTC’s ability to overcome volatility and key resistance. The eventual approval of a Litecoin-based spot Exchange-Traded Fund (ETF) could fuel more price growth. In January, an investment management firm submitted applications with the US Securities and Exchange Commission (SEC) to launch a Litecoin ETF. If approved, the ETF will make it easier for investors to gain exposure to LTC without having to own the coin directly. This broader accessibility can increase demand, further pushing prices higher.

Commenting on the potential of LTC, an executive expressed confidence in the asset’s future. He said Litecoin will see more interest from investors due to its attributes. While he did not share more details, his statements highlighted a comparison with Bitcoin regarding low-correlation assets.