The bull season for altcoins is in full swing, and we confirm this by seeing a Litecoin price above $ 200, increasing more than 650% in less than 1 year. Can LTC continue to be pushed higher by the strength of the bulls? Find out below.
At the time of this writing, LTC is trading at $ 214.72 according to the ProBit exchange, accumulating a 14.34% gain in the last 24 hours.
Litecoin hit $ 200 thanks to rising interest
LTC is among the 4 cryptocurrencies with the highest daily volume, thanks to the more than $ 14,000 million traded in the last 24 hours. A data that undoubtedly indicates the high usability of the chain and a growth in adoption.
According to data from Glassnode, there was a 30% increase in active addresses on Litecoin in 2021 alone, which denotes a growing number of users on that network.
Despite the fact that there is no exact news that is driving the price of this cryptocurrency, various analysts assure that the increase is following the common trend to pair with BTC.
Charlie Lee, creator of Litecoin, highlighted in December through his profile on Twitter, the different value propositions that this cryptocurrency offers. Those proposals include the high liquidity, inclusion in PayPal, and the high price of Grayscale’s Litecoin Trust offerings.
Record Open Interest in LTC Futures
Despite the fact that the price of Litecoin above $ 200 is still far from its all-time high, the open interest of its futures contracts is reaching records.
The current record is $ 584 million, a figure that has increased by 285% in the last 3 months as we can see in the graph below.
Thanks to this, LTC is the third largest cryptocurrency in the derivatives market, only behind BTC and ETH.
Open interest in Litecoin futures on major exchanges. Source: Bybt.
Other data from the great growth of interest in this cryptocurrency include:
LTC is the 3rd largest crypto holding in the Bitwise 10 Crypto Index Fund $ 210 million added to the Grayscale Litecoin Trust in the fund’s latest acquisition.
The equivalent of more than $ 200 million in Litecoin was added to the GLTC. Source: Grayscale.
Totally bullish trend
It is clear that the behavior of the last months of Litecoin is guided by the bulls. This has been maintaining an uptrend in the short and medium term.
In addition, what we are seeing as a rise of more than 650% is also signifying the resumption of the long-term trend, which was able to take the price to an all-time high of $ 420.
Everything is aligned so that we continue to see a continuation of the purchases. There is now a high probability that new price records will be hit in the not too distant future.
When we look at the daily chart we see how a short-term trend momentum is currently developing, after having picked up demand after a slight decline.
At the moment the momentum shows no signs of exhaustion, so we could see a bullish continuation before a correction occurs.
A setback could be on the way, but knowing the great bullish force, a fall will be nothing more than a product of healthy profit taking, and the search for demand that drives the price again.
LTC vs USDT daily chart. Source: ProBit.
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