- The breakout of Litecoin’s consolidation zone highlights the potential for a larger rally in the second half of November.
- Litecoin hash rate hits new ATH while open interest demonstrates growing activity in the derivatives segment.
It was an exciting week for the market with multiple ATHs and Litecoin (LTC) was not far behind. The cryptocurrency has been on an overall upward trend over the past 10 days, which resulted in a breakout.
Litecoin has been consolidating in an upward trend supported by support and resistance. It managed to break above the resistance line several times this week. This indicates that momentum could be building towards a bullish explosion as the liquidity rotation takes root.
Litecoin Hash Rate Hits New High
Besides holding on to its recent gains, there are a few other signs that things are heating up for LTC. For example, the Litecoin hash rate just climbed to a new all-time high of 1.42 PH/S.
Source: Coinwarz
The ATH hash rate suggests that miner profitability was on the rise, perhaps due to an increase in network activity.
On-chain volume has been accumulating since early November. According to DeFiLlama, LTC token volume reached its lowest level in November, just under $250 million.
It has since seen significant improvements to reach a monthly high of $1.98 billion in the last 24 hours at the time of observation.
Source: DeFiLlama
The latest volume increase is the highest the network has seen in the last 6 months. This, coupled with downside resistance, could indicate that bullish momentum remains strong.
LTC Open Interest Reaches 5-Month High
The demand for Litecoin has also increased in the derivatives segment. To recall, the open interest level across all exchanges peaked at $309.87 million over the past 24 hours at press time.
The last time LTC open interest was this high was mid-June.
Source: Coinglass
Despite this observation, open interest was still a fraction of its potential, especially compared to April levels. The cryptocurrency closed March 2024 with over $708 million in open interest.
Read Litecoin (LTC) Price Forecast 2024-2025
Since open interest goes both ways, an evaluation of long and short positions was necessary. The percentage of long positions was higher over the last three days than that of short positions.
Source: Coinglass
The data above suggests that more and more traders are moving towards the bullish camp. An indication of growing bullish optimism. However, mounting selling pressure towards the end of the week could also set LTC up for another unexpected pullback.
