Litecoin (LTC) is showing signs of life once again. After spending over a month trading below $90, the digital silver has surged past this psychological level, reflecting a broader wave of optimism sweeping across the crypto markets.
At the time of writing on Wednesday, LTC is trading around $92, buoyed by improved sentiment and anticipation around the Federal Reserve’s latest rate decision. While the Fed is widely expected to maintain interest rates in the 4.25% to 4.5% range, traders are paying close attention to Fed Chair Jerome Powell’s remarks for cues on the future direction of monetary policy—particularly as U.S.–China trade talks resurface.
A Solid Technical Rebound
Litecoin’s rebound from its April 7 low of $63, triggered by global tariff tensions, has unfolded with precision. The coin’s push through resistance at $80, and past its 50-day EMA (~$86) and 100-day EMA (~$92), adds weight to the bullish case.
This upward move was reinforced by a bullish engulfing candle earlier in the week, signaling strong buying pressure that lifted LTC above $92 for the first time in 40+ days. The next hurdle? The 200-day EMA, currently overlapping resistance around $93.
Supporting the positive momentum is the Relative Strength Index (RSI), which has climbed decisively toward the overbought zone. At its current trajectory, the RSI suggests there’s still room to run—possibly toward the elusive $100 mark, last tested in March.
Traders Bet Big: Surge in Open Interest
Momentum isn’t just technical. The derivatives market is echoing the excitement. According to CoinGlass data, open interest (OI) in Litecoin has ballooned by 17.73%, indicating a sharp rise in active positions. Meanwhile, trading volume jumped by 32.88%, reaching $1.45 billion—a clear signal of growing conviction among market participants.
The short squeeze dynamic is especially notable. Over the past 24 hours, short positions worth $1.6 million have been liquidated—far exceeding long liquidations, which came in at just $370,000. This imbalance has added fuel to the rally, as short sellers are forced to buy back LTC, further driving the price higher.
The $92–$95 Wall: Can Litecoin Break Through?
While Litecoin’s short-term prospects look promising, it now faces a substantial resistance zone between $92 and $95. On-chain data from IntoTheBlock shows that roughly 204,000 wallet addresses previously acquired 6.83 million LTC within this price range. Many of these holders may be looking to exit at breakeven, potentially creating selling pressure.
However, if LTC can convincingly clear this congestion zone, the path toward $100 could open up quickly. The IOMAP model also highlights solid support levels below, particularly around $85 and $82, where significant demand clusters could cushion any potential pullbacks.
