In the past day, the price of Litecoin [LTC] surged strongly, rising from a local low of $83 to a monthly high of $91.

Since reaching these levels, Litecoin has slightly retreated within an hour. As of the time of writing, Litecoin is trading at $89, marking a 6.52% increase in the past 24 hours.

During the same period, the trading volume of this altcoin grew by 31%, reaching $509.5 million.

The surge in trading volume alongside price increases indicates rising demand, with buyers entering the market to accumulate tokens.

Thus, traders have been actively accumulating LTC over the past week, indicating growing confidence in this altcoin.

This accumulation is reflected in the significant decrease in Litecoin inflows to exchanges. Over the past three weeks, the total inflow of Litecoin to exchanges has dropped to its lowest level in three months.

Such a significant decline indicates that funds inflowing to exchanges are decreasing, reflecting accumulation behavior.

This behavior is more common among LTC whales. Therefore, over the past three weeks, the net inflow of large holders relative to exchanges has continuously declined, reaching a three-month low.

This means that selling activities among large Litecoin holders have diminished.

Thus, the amount of LTC accumulated by large holders is greater than the amount sold, with an inflow of 116.8k LTC.

The spike in Litecoin's scarcity further proves this trend. From the circulating supply ratio of this altcoin, it has surged to 306 in the past day.

The rise in SFR indicates increased scarcity, with LTC available for immediate sale decreasing.

Typically, when demand increases or remains unchanged, increased scarcity leads to a rise in price.

With such tremendous demand, the question is whether the altcoin can maintain these gains and continue to rise.

Is Litecoin finally ready to rebound?

According to AMBCrypto's analysis, as of the time of writing, Litecoin demand is strong, and buyers are starting to take over the market. The current market conditions may lead to further increases in Litecoin.

Before this price surge, the altcoin had been in a sustained downward channel for several months and showed a one-week upward trend.

With the recent price increase, Litecoin has broken out of the downward channel and is currently retesting it. If the retest is successful, this altcoin will see a significant rise.

Take a look at Litecoin's MACD; it has risen to 1.2 since the bullish crossover two weeks ago.

The continued rise shows that this altcoin is experiencing strong upward momentum, with closing prices on the daily chart consistently increasing. With enhanced momentum, this altcoin is expected to successfully test again.

Therefore, if current demand remains unchanged and the upward momentum continues to be strong, the altcoin may successfully retest the latest trend and rise to $96.

However, if the bulls' attempt fails, a pullback could drive Litecoin down to $83.