Both institutional and speculative demand are rising for Litecoin price. However, derivatives data suggests leverage, not spot buying, is driving most of the rally.
Open Interest Nears 2026 Peak
Litecoin’s futures open interest (OI) climbed to around $670 million, just below its yearly peak of roughly $690 million set in January. OI added about $140 million in two days and has more than doubled since the June low.
The increase is not just a result of rising prices. Measured in LTC, open interest grew by roughly 25% over the past week, according to Glassnode. This confirms that traders are opening new positions.
The last time leverage reached these levels, it did not end well. In January, OI peaked as LTC rolled over from above $80. Over the following weeks, the price dropped to around $53.
ETF Holdings Hit Record High
Meanwhile, US spot Litecoin ETF balances tracked by Glassnode reached a record of about 175,000 LTC. Canary Capital’s LTCC added roughly 39,000 LTC in its largest inflow to date, and its holdings have nearly doubled since January.
Notably, ETF balances rose even during the June crash to $41.
Still, scale matters. The latest inflow is worth about $2.8 million, while open interest grew by roughly $270 million over the same week. ETF demand is growing, but it is too small to carry the price alone.
Litecoin Price Analysis: Bulls Test Key Resistance
On the daily chart, LTC broke above the 0.5 ($62.09) and 0.618 ($67.47) Fibonacci retracement levels in a single candle. The price then tested the 0.786 zone near $75, where it broke down in late January.
The move above the May high around $60 marks the first higher high since the February–May range, following a series of higher lows since June.
The Relative Strength Index (RSI) stands at 81, its highest reading this year. There are no signs of bearish divergence, but overbought conditions raise the odds of a short-term cooldown.
What’s Next for LTC?
A daily close above $75 could open the way toward $80 and the January high of $84.89.
In case of a correction, $67.47 acts as the first support. Below, the $60–62 zone, where the 0.5 level meets the former May high, should serve as strong support. A daily close below $56.70 would put the breakout in doubt.
With leverage near yearly highs, a pullback before the next leg up remains a realistic scenario.
Source: BeInCrypto
