Litecoin Oversold Setup Sparks Explosive Rebound Above $108

• Litecoin prices are at $103.17 after decreasing by 1.48%, with a market value of $7.88 billion and a volume of $1.73 billion.
• RSI shows oversold indications, which implies a rebounding potential, while MACD below the signal line indicates ongoing bearish strength.
• Derivatives business slowed down, open interest down by 4.21% at $800.06 million, and volume down 2.71%.

Litecoin is currently priced at $103.17, which shows a decline of 1.48% over the past day. The token has a market value of $7.88 billion with a 24-hour volume of $1.73 billion that accounts for 0.21% of the overall crypto market share.

Source: CoinCodex

Critical Litecoin Support Emerges at $103

A crypto analyst noted that Litecoin had been the most discussed ticker over the past hour as more eyes looked at the asset despite the pullback that Litecoin recently experienced. On the short-term chart, LTC is currently traveling downward within a downtrend, falling beneath its 5, 10, and 20-period moving averages that showcase the present downward momentum.

Source: X

Technical indicators show a challenging setup for the asset. The Relative Strength Index (RSI) is signaling oversold conditions, suggesting the possibility of a rebound if buying interest returns. However, the MACD is below the indicator’s signaling line too, also suggesting an ongoing downward push over the short term.

Market watchers identify $103 as a critical support level, with a reversal keeping Litecoin from any further losses. On the higher end, resistance lies at $108, and a breach above that ceiling could bring back the short-term stability of the token.

Despite the current decline, Litecoin remains an extremely popular digital currency in the market landscape. The coming days will decide if the same shall be able to sustain above the $103 mark or if the pressure of sales pushes the token towards another correction.

Also Read | Ethereum vs Reality: Kang Challenges Tom Lee’s Bold ETH Claims

Litecoin Derivatives Show Decline

The derivatives market of Litecoin experienced a sharp decline, wherein open interest dwindled by 4.21% to $800.06 million. That implies that there is profit-taking by investors from active positions or that investors believe that there will be sluggish price actions over the short term. Trading volume also dropped by 2.71% to $1.02 billion, indicative of the market activity across the board having tapered from the preceding sessions.

Source: CoinGlass

Further into sentiment analysis, the Weighted Open Interest (OI Weighted) percentage is at a meager 0.0064%, exhibiting a neutral-to-minimum use of leverage within the market. This indicates that while investors are still optimistic, they are not taking on highly risky leveraged positions. 

Source: CoinGlass

Such a passive market posture normally indicates that the market is holding out for a clearer price direction before implementing aggressive measures.

Also Read | Will XRP Stay Above $2.70? Flare’s FXRP Brings Fresh Utility to Holders