Litecoin price runs into 6.83 million LTC resistance cluster as open interest expands

Litecoin (LTC) price gains bullish momentum, extending the previous day’s positive move to trade at $92 at the time of writing on Wednesday, as markets gauge the potential impact of the Federal Reserve’s (Fed) interest rates decision during the American session. Although the central bank is expected to leave the rates unchanged at the 4.25%-4.5% range, the Fed Chair Jerome Powell’s comments would expand on the policy amid thawing trade tensions. Planned trade talks between the United States (US) and China could give insight into the market’s direction later this week.

Litecoin’s surge above $90 supports the bullish case

Litecoin’s price recovery from the tariff-triggered crash to $63 on April 7 signals the likelihood of a long-term uptrend. This bullish outlook comes after LTC broke above key levels like the resistance-turned support at $80, the 50-day Exponential Moving Average (EMA) at approximately $86, and the 100-day EMA at $92.

LTC/USDT daily chart

A bullish engulfing candle propelled Litecoin’s uptrend past $92 on Tuesday, a level not seen in 42 days. Now, LTC encounters resistance at $93, reinforced by the 200-day EMA. 

The Relative Strength Index (RSI) indicator’s climb above the midline toward overbought territory highlights strong bullish momentum, boosting the odds of LTC hitting $100, a resistance last tested in early March.

A 17.73% surge in Open Interest (OI) reveals a significant influx of new positions in the Litecoin derivatives market. The uptick reflects growing trader interest, as OI measures the total number of outstanding contracts. It is plausible that traders are positioning for a run-up above $100 as Litecoin’s price gains bullish momentum.

Litecoin derivatives data | Source CoinGlass

The chart above shows that the 32.88% increase in trading volume to $1.45 billion amplifies the OI surge. It suggests strong conviction among traders; moreover, liquidation data indicates a strong bias toward long positions. 

Short liquidations ($1.60 million) have significantly outpaced long liquidations ($370,000) over the last 24 hours, mirroring a short squeeze, where price increases force short sellers to close positions. This adds upward pressure, as LTC approaches the resistance cluster between $92 and $95.

Litecoin’s uptrend encounters massive supply

Litecoin’s price is facing robust resistance in the region between $92 and $95, according to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) on-chain metric. About 204,000 addresses that previously bought 6.83 million LTC in this range pose a challenge to the uptrend if investors decide to sell to break even. 

Litecoin IOMAP model | Source: IntoTheBlock

On the bright side, a break above the seller congested area at $92-$95 could accelerate Litecoin above the $100 hurdle. Besides, Litecoin sits on multiple demand clusters, as illustrated by the green circles in the chart above. In the event of a pullback below $90, traders would look for tentative liquidity-rich regions around $85 and $82, respectively.