Key takeaways
- LTC is up 1% in the last 24 hours and now trades at $85 per coin.
- The coin could rally above $95 amid growing retail demand.
Litecoin reclaims $85 as demand increases
Litecoin (LTC) has added 1% to its value and is currently trading above $85 per coin. The positive performance comes amid increased demand for cryptocurrencies with listed Exchange Traded Funds (ETFs). The momentum comes after the Vanguard Group decided to allow crypto market exposure through third-party ETFs.
Vanguard’s decision extends exposure to the Canary Litecoin ETF (LTCC), increasing the possible demand for the fund.
However, data obtained from SoSoValue revealed that the Litecoin ETF saw a net-zero flow on Monday and Tuesday, keeping the cumulative net inflow at $7.67 million.
Furthermore, the Litecoin derivatives market saw a surge in demand, as the futures Open Interest (OI) surged by 4.41% over the last 24 hours to $440.26 million. This surge suggests that investors are confident that Litecoin’s price could rally higher in the near term.
Finally, data obtained from CryptoQuant shows an increase in the average order size from whales. This reflects greater confidence and could further boost demand.
Litecoin could reclaim $95 as indicators flash bullish
The LTC/USD 4-hour chart is bearish and inefficient as Litecoin has underperformed in recent weeks. The coin has recovered from the low of $74 created on Monday and could rally higher in the near term.
At press time, LTC is trading at $85.2 per coin. The technical indicators have switched bullish on the 4-hour timeframe. The RSI of 53 shows that the bulls have regained control, and LTC is no longer in the bearish region. The MACD line has also switched bullish since Tuesday, indicating a bullish bias.
If the recovery continues, Litecoin could surge to the 0-day Exponential Moving Average (EMA) at $92.94. An extended rally would allow it to hit the 200-day EMA at $99.51. However, if Litecoin loses momentum, it could retest the November 4 and December 1 lows at $79.68 and $74.66, respectively.
