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Litecoin (LTC) has, in the last 30 days, shed 6.113% of its value as the coin continues to experience volatility. However, the asset is showing the potential to register a bullish rally as the open interest has, in the last 24 hours, jumped to a new weekly high.
Rising open interest signals investor confidence in Litecoin
According to CoinGlass data, 8.44 million LTC valued at about $958.02 million were committed to the asset’s futures market by investors. For context, open interest refers to the sum of unsettled active futures contracts that investors have committed to Litecoin.
The bullish spike signals that investors are anticipating continued upward movement for LTC. According to available data, the majority of these investors are on the Binance exchange, with 2.44 million LTC valued at $276.93 million. This represents 28.9% of the total open interest within this time frame.
Bitget and Bybit are next, with 15.87% and 14.78% of the total share, respectively. In asset terms, Bitget investors committed 1.34 million LTC valued at $152.05 million, while Bybit registered 1.25 million LTC worth $141.65 million.
The uptick in open interest coincides with increased optimism of a possible approval of the pending exchange-traded fund (ETF) approval by the Securities and Exchange Commission (SEC). Notably, there is anticipation that the U.S. SEC will decide on applications, with Nate Geraci placing approval probability at 95%.
Litecoin price action and future outlook
The uptick in open interest and other bullish developments have triggered a slight increase in price. As of press time, the Litecoin price was changing hands at $113.00, a 0.26% increase in the last 24 hours. The coin previously traded at a peak of $114.63 before the correction.
Investors are also actively engaging with the coin as trading volume climbed by 2.31% to $636.73 million.
There was anticipation in some quarters when Litecoin traded at $129 that it could record a 100% increase, as it mirrors Ethereum’s trend. Ali Martinez, the renowned analyst, has predicted a possible rise to $220. Whether it can climb that high only time will reveal.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team