• Litecoin (LTC) had an impressive June, with a rally from $72 to $115 at the time of writing.
• The upcoming halving event on August 3rd is expected to reduce block reward for miners and cushion inflation.
• Open Interest rates have surged since the end of June, indicating increased buying pressure and demand.
Litecoin Bulls Seek Gains at $130
Litecoin (LTC) investors had an impressive June following a massive rally that saw the coin reach $115 at the time of writing. With only 30 days to Litecoin’s halving event scheduled for 3 August 2023, it is expected to impact its network and price significantly by reducing the current block reward for miners from 12.5 LTC to 6.25 LTC, cushioning inflation and potentially propping up its value.
Bullish Technical Indicators
The key technical indicators have been positive, including an RSI (Relative Strength Index) in overbought zone while OBV (On Balance Volume) has increased since mid-March – a sign of increased buying pressure and demand – and ADX (Average Directional Index) above 20 denoting a solid uptrend on higher timeframe charts. This reinforces the long-term bullish bias so LTC could clear the $115-zone roadblock and target the $134-resistance level should bulls manage this obstacle.
Open Interest Rates Surge
The transition from Q2 to Q3 was marked by a sharp uptick in Open Interest rates for LTC which doubled in just three days indicating increased demand for the coin – another bullish cue.
Downside Risk if Bulls Fail to Clear Roadblock
Should bulls fail to clear this roadblock however, there is downside risk as a breach below the $100-mark will weaken higher timeframe market structure invalidating bullish thesis leading towards possible retracement levels around $90 or even lower at $85.
Conclusion
In conclusion, Litecoin bulls could seek more gains at $130 if they manage to clear the $115 roadblock which looks increasingly likely given the positive technical indicators seen across multiple timeframe charts along with increasing open interest rates signalling increased demand for Litecoin prior to its halving event scheduled for August 3rd this year..