Litecoin [LTC] has been gaining significant traction in the current market sentiment, showing remarkable performance in the last 24 hours amidst a bearish trend. Surpassing major cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH], LTC has exhibited exceptional strength.
Litecoin Surpasses AVAX and SUI
With a notable surge of over 8.50% in the past day, Litecoin has not only outperformed most assets but has also flipped Avalanche [AVAX] and Sui [SUI]. The cryptocurrency is now trading close to $131.50, attracting considerable attention from traders.
Reports from CoinMarketCap and IntoTheBlock indicate a 65% increase in trading volume and a 7.5% rise in daily active addresses for LTC within the last 24 hours.
Increasing Bullish Activity by Long-Term Holders
Analysts at the on-chain analytics firm Coinglass observed dominant bullish momentum in LTC, pointing towards long-term holders and investors accumulating tokens amid the ongoing bearish sentiment. Data on spot inflow/outflow reveals an outflow of $3.15 million worth of LTC tokens from exchanges, signaling a potential accumulation phase.
The current scenario is viewed positively by experts, as the accumulation could create buying pressure, propelling LTC further on an upward trajectory.
Traders’ Over-Leveraged Positions
In addition to long-term holders, intraday traders are also leaning towards bullish positions. Data shows that traders are over-leveraged at $129.5, with $7.60 million in open long positions. At the same time, short traders are over-leveraged at $134, holding $3.53 million worth of short positions, underscoring the bullish sentiment prevailing in the market.
These over-leveraged positions suggest that bulls are currently dominant and could aid LTC in maintaining its upward momentum.
Price Performance and Future Resistance Levels
The growing interest from traders and investors, in conjunction with the price surge, has propelled LTC to a critical resistance level of $140. Historically, this level has triggered selling pressure and price corrections in the past.
Furthermore, LTC seems to be forming a bullish inverted head and shoulders pattern on the daily chart, with the $140 resistance acting as the neckline. Should LTC continue its upward movement and breach the $140 level, closing a daily candle above it could potentially lead to a 25% surge towards $180 in the near future.