Market Pulse: Litecoin Could Rebound After Weeks of Selling Pressure

Source: CritpoTendencia Original Title: The Market Pulse: Litecoin Could Rebound After Weeks of Selling Pressure Original Link: Litecoin’s price has shown significant behavior over the past few weeks. After a sustained correction phase, the asset hit a low around $69.63 on January 16 and subsequently registered a rebound that once again caught investors’ attention.

This movement is not solely a reaction to a technical trigger but highlights two key signals worth monitoring: the growth of open interest and the possible transition toward a more constructive market structure.

Next, we review the areas of greatest interest for traders, as well as the role that open interest might be playing in the current LTC price dynamics.

Traders are Looking at Litecoin Again

In the Litecoin open interest chart, a significant change in market dynamics can be observed in recent days.

After several months of progressive contraction of OI, reflecting a constant outflow of speculative capital and reduced participation in the derivatives market, the indicator began to recover steadily. Specifically, it moved from levels near $350-380 million to approach the $650-700 million zone again.

This increase does not occur abruptly or in isolation but gradually, suggesting an orderly re-entry of positions and renewed interest from both institutional traders and short-term operators.

A key point is that this increase in OI occurs alongside a phase of stabilization in LTC’s price. This indicates that the market is not reacting solely to forced liquidations but to the effective opening of new positions.

This type of behavior often anticipates periods of higher volatility, as rising open interest amplifies the price’s sensitivity to technical breakouts. In this context, Litecoin is entering a phase where capital flow begins to reactivate, increasing the likelihood of more defined directional movements in the short term, always contingent on price confirmation.

Technical Analysis: Rebound at Key Support

The LTC/USDT pair trades around $74.17, after an initial rebound that failed to hold and ended up giving back part of the advance. The area of greatest interest in the short term is between $73.17 and $75.45.

The $73.17 level acts as immediate support; as long as the price remains above it, the rebound remains technically defendable. In contrast, $75.45 represents the first operational resistance that must be recovered to enable an upward move toward higher levels.

Above this zone, $77.29 stands out as a more relevant resistance. This level coincides with an area near the midpoint of the volume profile as well as the confluence of the descending VWAP, a setting where supply historically appears and where it is prudent to seek clear confirmations before initiating new trades.

In the alternative scenario, if the price remains below the $75.45-$77.29 range, the bias remains fragile, as any rebound could be limited to a simple pullback within a weak structure.

A clear close below $73.17 would be a sign of technical deterioration and would increase the likelihood of seeking demand at lower levels: first around $72.00 and, if no support appears, at the supports located at $69.63 and $68.69.

In summary, to operate with a greater safety margin, the most solid signal would be the recovery of $75.45 accompanied by sustained acceptance above $77.29. Conversely, if LTC repeatedly fails below $75.45 and compresses toward $73.17, that range will again become a zone where adopting a more conservative stance is advisable.