Litecoin holds strong above 20-day EMA as Open Interest and Sharpe Ratio hints a long-term bullish trend continuation.
Key Takeaways
Содержание статьи:
What supports Litecoin’s bullish outlook despite recent corrections?
LTC’s sustained hold above the 20-day EMA and rising open interest signal strong institutional accumulation and bullish sentiment.
What level must LTC clear to continue its rally?
LTC needs to break past the $124 supply zone to target the $135 resistance level.
Litecoin [LTC] is showing signs of renewed momentum on the daily chart after multiple rejections at the $124 supply zone. The altcoin’s sell-side momentum seems to be fading as the prices approach the market gap at around $115.
Despite minor pullbacks in recent days, Litecoin has maintained its position above the 20-day Exponential Moving Average (EMA), which continues to serve as short-term support.
This stability boosts confidence among investors and traders considering long positions around $115, particularly given the still-bullish long-term outlook.
However, if the EMA support fails and prices drop below it, sellers could regain control and shift market momentum.
Source: TradingView
Institutions enter as Open Interest surges
On-chain metrics also support the long-term bias. One encouraging signal flashing green lights for bulls is the sharp rise in Open Interest (OI).
LTC’s OI stood at 730 million, at press time, a significant surge from last month’s dips that pushed the open interest down to 600 million.
The steady climb suggests that institutional traders are re-engaging with LTC, adding leveraged positions that could amplify any sustained upside move.
Analysts often view rising OI during consolidation as a sign of accumulation, especially when it aligns with key technical levels of the holding firm.
Source: Messari
LTC’s Sharpe Ratio hints at more returns
Alongside steadily surging institutional activity, LTC’s 90-day Sharpe Ratio is also on a surge. The ratio stood at 2.14, as of writing, underscoring improved returns for long-term investors relative to risk.
The rising Sharpe Ratio indicates that LTC holders are being rewarded for playing the long game, a dynamic that preceded continuation trends in the past.
LTC trend points to healthier investor sentiment compared to earlier months, when returns lagged behind market benchmarks.
Source: Messari
$135 resistance zone in focus
The key question among the investors and traders at the moment is whether the combination of institutional interest and improving long-term metrics can fuel a decisive breakout for LTC.
Breaking above the $124 supply zone could pave the way for LTC to rally toward the $135 resistance level from a technical standpoint.
However, if momentum weakens, a short-term pullback to fill the market gap at $115 or a retest of the 20-day EMA support may occur.
Next: Ethereum vs. Solana: Who wins as ETH targets $7.9K, SOL’s appeal rises?
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