Litecoin Price Faces Heavy Resistance at 6.83M LTC—but Bulls Aren’t Backing Down

• Litecoin’s Relative Strength Index (RSI) signals strong bullish momentum, while a 17.73% rise in Open Interest (OI) and a sharp increase in daily trading volumes suggest traders’ bullishness.
• While Litecoin faces significant resistance between $92-$95, a breakout could drive prices past $100 in the short term.

Amid the broader crypto market recovery today, Litecoin price has staged strong momentum, gaining 10% in the last 24 hours, and moving past $90 levels for the first time in the last 40 days. Just as the US Federal Reserve declares the FOMC meeting conclusion on Fed rate cuts today, LTC touched a high of $92.56 earlier today.

The US central bank is likely to keep the interest rates unchanged at the 4.25%-4.5% range, however, the market is looking forward to comments from Fed Chairman Jerome Powell and providing clarity on monetary policy amidst easing trade tensions. Upcoming trade talks between the U.S. and China later this week could further influence market trends.

Litecoin Price Jump Activates Bulls for A Strong Upside

Following strong trade war action by Donald Trump and crypto market volatility in early April, the Litecoin price collapsed all the way to $63, before setting the stage for a strong 35% upside from there onwards. However, the bullish outlook gained absolute momentum after LTC broke the key resistance levels at $80, followed by subsequent breakouts of the 50-DMA at $86 and the 200-DMA at $92.

Earlier today, Litecoin price surged past $92 levels for the first time in the last 42 days. The Relative Strength Index (RSI) moving above the midline and approaching overbought territory signals robust bullish momentum, increasing the likelihood of LTC testing the $100 resistance level last seen in early March, as reported in our previous coverage.

Furthermore, the derivatives data also highlights a major strength for LTC. A 17.73% rise in Open Interest (OI) indicates a notable increase in new positions, as per the Coinglass data. This suggests traders may be gearing up for a potential rally above $100 as Litecoin’s bullish momentum strengthens. Also, the daily trading volume has surged by a staggering 68% to more than $900 million.

Over the past 24 hours, short liquidations totaling $1.60 million have far exceeded long liquidations of $370,000, signaling a potential short squeeze as rising prices compel short sellers to exit their positions. This comes despite the US SEC delaying the approval of Litecoin ETF by Canary Funds earlier this week.

LTC Investors Can Face Major Supply Wall

Litecoin’s price is encountering strong resistance between $92 and $95, as revealed by IntoTheBlock’s In/Out of the Money Around Price (IOMAP) metric. Approximately 204,000 addresses that acquired 6.83 million LTC within this range could hinder the uptrend if holders choose to sell at break-even levels.

A breakout above the seller-congested zone of $92-$95 could propel Litecoin past the critical $100 resistance level. Additionally, Litecoin is supported by several demand clusters, as highlighted by the green circles in the chart. In the event of a pullback below $90, traders may target liquidity-rich zones near $85 and $82 for potential support.