Litecoin Rally Brewing? Big Wallets Load Up as LTC Technicals Flip Bullish

• Whales grabbed 360,000 LTC while smaller holders sold off, signaling a shift in conviction.
• Open Interest jumped over 8% with funding rate favoring longs, pointing to a strong bullish bias.

Litecoin (LTC) has climbed to $98.21 as of Thursday, marking its fifth consecutive day of gains. The price moved past the $96.30 weekly resistance level on Wednesday and held that level the following day.

Technical signals remain positive, with many watching the $107.05 area as the next level of interest.

Major holders appear to be becoming more optimistic. Between June 5th and July 11th, wallets holding 1 million to 10 million LTC added 360,000 tokens to their holdings, according to Santiment. Meanwhile, wallets holding 100,000 to 1 million LTC reduced their holdings by 140,000 tokens, possibly reacting to broader market uncertainty.

This behavior change suggests that larger players intervened during a dip in the market. That buying activity may have contributed to the recent steady price action and ongoing upward trend.

Source: Santiment

Derivatives Spike as Bulls Show Strength

Activity in the Litecoin derivatives market suggests growing confidence. According to CoinGlass data as of Thursday, the Open Interest in LTC increased by 8.63% over 24 hours, reaching $745.88 million. A rise in Open Interest usually indicates fresh capital entering the market, suggesting that traders expect further price increases.

Another relevant metric is the OI-Weighted Funding Rate, which climbed to 0.0228%. This shows that long positions are paying short positions—a setup that, in past instances, has often been followed by strong upward price action in Litecoin.

Source: Coinglass

Technical signals back this trend. The Relative Strength Index is sitting at 68, suggesting strong upward momentum without being in overbought territory. The MACD also remains positive after a bullish crossover at the end of June, while green bars on the histogram above the zero line suggest that bullish momentum is gaining.

Traders Target $500 LTC This Cycle, Says Analyst

Litecoin’s near-term technicals point toward a test of the May 10 peak at $107.05 if the current momentum continues. Support remains firm around $91.78, which matches the 200-day EMA and the 50% Fibonacci retracement drawn from the May peak to the June low.

A drop below the $96.30 level, however, could lead to a retest of the $91 zone.

Source: TradingView

In the broader outlook, some traders are betting on much bigger gains. On July 16, crypto analyst Crypto Patel posted that Litecoin may reach resistance around $120 to $140 in the current cycle. 

He added that aggressive targets could extend up to $200, $300, $400, and even $500. He said:

1K Still in Play, But $500 This Bull Run? Absolutely,

If Litecoin maintains its current pace and holds above support levels, this accumulation and derivatives activity could continue to push it toward higher targets.