Litecoin Surges 20% in V-Shaped Recovery, Bulls Eye $300

Litecoin (LTC) has been on a remarkable rally, bucking the trend of a broader crypto market crash. The altcoin demonstrated a V-shaped recovery, surging by 20% after dropping to $106 on Feb. 25. After a brief decline below the 50-day and 100-day exponential moving averages (EMAs), Litecoin has regained a bullish position and is currently outperforming most assets in the crypto market.

Litecoin's current performance suggests an asymmetric rally compared to the wider crypto market. Data indicates a clear trend where LTC's open interest has consistently peaked at $140. During the recent correction, LTC's open interest dropped from $885 million to $525 million, a 40% decline between Feb. 20 and Feb. 26. However, a majority of the decline occurred within the first three days, and the open interest remained relatively flat during LTC's drawdown in the past two days.

In the past 24 hours, a flash open interest spike of 10% was observed alongside a price rise, which might imply fresh long positions from traders. The rise in the funding rate further confirmed that more longs were currently active than shorts. This positive sentiment was echoed by Tyler, an anonymous crypto trader, who described Litecoin as having "one of the best charts in crypto."

Analysts have been bullish on Litecoin's prospects. Poseidon, a crypto analyst, predicted that Litecoin is targeting a new all-time high at $300. Mihir, a technical analyst, believed the long-term target could be even higher, suggesting that if Litecoin breaks above $250, a $1,000 target is feasible.

However, overhead resistance at $140 remains a challenge for Litecoin. As illustrated in the chart below, Litecoin's weekly price action is exhibiting strength, and a candle close above $133 would mark its highest level since January 2022. To invalidate its resistance range, LTC needs a weekly close above $133, with supply-side liquidity available on the upside.