The cryptocurrency market has witnessed a week filled with exciting developments, including all-time highs, and Litecoin [LTC] is one of the standout performers. Over the past ten days, Litecoin has been following an upward trend, breaking out of its previous patterns.
Litecoin has been trading within an ascending pattern supported by both resistance and support levels. It successfully breached the resistance line multiple times this week, hinting at a possible bullish rally as liquidity rotation gains traction.
Unprecedented Spike in Litecoin Hash Rate
Another indicator pointing towards the increasing heat in the LTC market is the remarkable surge in the Litecoin hash rate, reaching a new peak of 1.42 PH/S.
The record hash rate underlines the rising profitability for miners, possibly fueled by a surge in network activity.
On-chain volume has been steadily increasing since the beginning of November, as per DeFiLlama data. Litecoin token volume was at its lowest in November, just shy of $250 million.
However, in the last 24 hours, the volume surged significantly, hitting a monthly high of $1.98 billion, suggesting a robust bull trend.
This recent spike in volume marks the highest level in the past six months, combined with strong resistance against downward movement, pointing towards a sustained bullish momentum.
Long-Term Interest in LTC Hits 5-Month High
Interest in Litecoin derivatives has also witnessed a notable surge, evidenced by open interest across all exchanges peaking at $309.87 million in the last 24 hours.
The last time such high open interest levels were observed was back in mid-June.
Despite the recent surge, open interest levels still fall short of their potential, especially when compared to the figures seen back in April. By the end of March 2024, Litecoin had amassed over $708 million in open interest.
Considering that open interest impacts both long and short positions, it is essential to evaluate the ratio of longs to shorts. Over the past three days, the proportion of traders taking long positions exceeded those going short.
This data indicates a growing bullish sentiment among traders, indicating a surge in optimism. However, the looming increase in selling pressure towards the week’s end could potentially trigger an unexpected pullback in LTC’s price.