Litecoin price has crossed the $120 mark again, increasing by 10% in the past day. Yet, questions arise about the continuation of this market rally.
Rising Open Interest and Profit Taking
The first bullish indicator for the Litecoin price prediction is the increase in open interest, meaning more money is entering LTC. Open interest crossed $1 billion in late July and remains strong, indicating traders are betting on higher prices.
However, there is a twist: net flows to exchanges have turned positive. This means more LTC is moving into exchanges than out of them, typically signaling an intention to sell rather than buy.
Liquidation Map and Long Position Dominance
The liquidation map for the LTC/USDT pair on Bitget shows a clear dominance of long trades, with over $105 million in leveraged long positions below the $120 zone. In contrast, short positions are barely at $43 million, indicating a bullish sentiment among traders.
However, a sudden price drop could lead to the liquidation of these long positions, resulting in a sharp decline.
Litecoin Price Prediction and Resistance Levels
Currently, LTC is trading near $121. Based on the Fibonacci extension from the June low of $76 to the July peak of $121, the next major target is at $181, about 50% higher than current levels. To reach this target, bulls need to overcome smaller resistance levels: $129, $135, and $152. Thus, the journey to $181 is expected to be complex.
In summary, the Litecoin price forecast suggests a potential rise to $181, yet the journey may be fraught with market risks.
