Litecoin steadies as traders position for a potential breakout despite lingering negative sentiment Litecoin (LTC) has settled into a stabilization phase after a recent wave of fear drove sentiment sharply negative. Despite pessimistic chatter across retail channels, price has rebounded more than 6% from the $72–$75 demand zone and is currently hovering around $74.56 — a sign buyers have been absorbing selling pressure rather than capitulating. Technical picture - Support has held: The market has printed two comparable swing lows near $74, forming a nascent double-bottom that highlights repeated failure from sellers to extend losses (source: TradingView). - Momentum easing: The RSI sits near 40.38, indicating bearish momentum has faded but without reaching oversold territory. Daily candles show weaker downside follow-through and compressed volatility — a hallmark of exhaustion rather than renewed selling aggression. - Immediate resistance: Price has already reacted up toward $84.77. A decisive, sustained move above that level would open a clear structural path toward the $100 psychological/technical barrier. Until then, the chart reflects balance and range-bound behavior rather than a directional trend. Derivatives and positioning - Open Interest: At press time, Open Interest has risen 3.39% to $664.76 million while LTC consolidates near support (source: CoinGlass). Unlike short-covering rallies — which typically see OI fall — the increase in OI alongside a tight price range suggests fresh, deliberate positioning by traders rather than liquidation-driven moves. - Long/short skew: More than 90% of accounts are positioned long, signaling strong directional conviction toward upside. That crowding raises sensitivity to volatility: while price has not yet punished longs, a sudden downside move could provoke sharp reactions. - Funding rates: The OI-weighted funding rate remains mildly positive at about +0.0043%, implying traders are willing to pay for long exposure but without the overheated leverage that often precedes large short squeezes. Funding has been measured, supporting the view that market participants are patient rather than euphoric. What it means Market dynamics point to positioning-driven stabilization: fear peaked but price has refused to validate the bearish narrative. Compressed volatility, rising participation, and repeated defense of the $72–$75 zone indicate the market is waiting for confirmation before committing to a new trend. The most immediate bullish confirmation would be a sustained break above $84.77, which could pave the way toward $100. Conversely, the crowded long bias makes any downside test potentially explosive. Bottom line Litecoin is holding key support and digesting activity around $74 while traders build positions ahead of a likely resolution. The next significant moves will come once price either clears $84.77 to target $100 or breaks the trusted demand zone, testing bearish conviction. Disclaimer: This article is informational only and not investment advice. Cryptocurrency trading carries high risk — do your own research before making decisions. © 2026 AMBCrypto (data sources: TradingView, CoinGlass) Read more AI-generated news on: undefined/news