Litecoin (LTC) is gradually regaining its growth momentum after several months of accumulation. It has set a new record for open interest (Open Interest - OI), reaching 761 million USD in just 24 hours. The price of LTC also shows positive growth prospects as it surpasses important resistance levels. With a market capitalization of 7.6 billion USD, Litecoin currently ranks 21st among the largest cryptocurrencies.
Analysts and investors alike predict that LTC will record higher prices in this cycle, with the potential to reach 120 USD.
Litecoin's interest rate outlook
According to data from CoinGlass, Litecoin's open interest has increased by 6.7% in the past 24 hours, reaching 761 million USD. Based on the current price, investors have committed 7.63 million LTC for futures contracts. This indicates a growing confidence in the future price trend of LTC.
Open interest represents the number of outstanding contracts. When open interest increases, it indicates that more traders are participating in the market and opening new positions. Generally, higher open interest suggests increased market liquidity, with more contracts available for trading. This reflects a growing interest in the asset.
For Litecoin, open interest has increased alongside the rise in value. LTC has surged to 111.2 USD and has slightly decreased to 102.17 USD at the time of writing.
The increase in open interest, along with rising prices, often signals strong buying pressure and confidence in the upward trend. As new Long positions are opened, traders expect prices to continue rising.
Notably, LTC has surpassed the levels of 101 USD and 102 USD. These levels are crucial as they could trigger a breakout or signal a potential correction if selling pressure increases. With the synchronization of open interest, the price of Litecoin may be on track to establish a new all-time high (ATH) this year.
66.3% of Litecoin addresses are in profit
In the context of the recent bullish trend, a large majority of currently active LTC addresses are in profit. Data from IntoTheBlock shows that 50.9 million LTC addresses, worth 5.08 billion USD, are 'in profit'. Most of the profits come from large investors, accounting for 66.3% of the total addresses.
However, about 15.2% of LTC wallet addresses, equivalent to 11.77 million, are 'not in profit' or at a loss. Financially, this amounts to 1.17 billion USD. The rest, 18.38% or 14.11 million Litecoin addresses, have recorded neither gains nor losses.
The fact that LTC has many owners who are in profit indicates that investors still maintain confidence in the future of this coin. Additionally, the trading volume of LTC has increased by 50.6%, reaching 967 million USD, showing a growing interest from investors in this coin.
Will the price of LTC reach 120 USD in the near future?
Discussions about LTC have intensified due to strong growth in recent days. The price of LTC has emerged as a top candidate for the next bullish phase of the market. With the current positive sentiment, some analysts predict a level of 120 USD in the long term. However, the path to 120 USD will depend on LTC's ability to overcome volatility and key resistance levels.
The approval of an ETF fund based on Litecoin could further drive price growth. In January, investment management company Canary Capital filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a Litecoin ETF.
If approved, the ETF fund will help investors easily access LTC without having to directly own the coin. This wide accessibility could increase demand, thereby pushing the price even higher.
Commenting on LTC's potential, Grayscale CEO John Hoffman expressed confidence in the future of this asset. He believes that Litecoin will attract more interest from investors due to its outstanding characteristics. Although he did not provide further details, his statements emphasized the comparison with Bitcoin in terms of assets with low correlation.