Litecoin briefly touched the $130 mark on Monday as sentiment around the privacy-focused coin improved after a US court struck down sanctions against Tornado Cash. The price of Litecoin is currently up 75% since Gary Gensler's departure from the US SEC was confirmed on November 14th. Litecoin’s open interest exceeded $620 million on December 2nd, reflecting a 56% jump in futures contracts within a week of the Tornado Cash ruling.
Litecoin price hovered around the $130 mark on Monday as sentiment around the privacy-focused coin improved after a US court overturned sanctions against Tornado Cash.
Will LTC price rise towards $150 in the next week?
Litecoin price reaches 3-year high as market reacts to Tornado Cash ruling
On November 26, a US court overturned sanctions imposed on crypto trading mixer Tornado Cash, sparking an immediate bullish reaction against leading privacy-focused assets including Litecoin.
Reuters reports that an appeals court has ruled that the U.S. Treasury will issue Tornado in 2022 for facilitating cybercrime and laundering more than $7 billion in money, particularly by malicious parties such as a North Korean hacker group.・When sanctioning Cash, the court ruled that he had acted outside his authority.
The court's decision to revoke the sanctions had important implications for the legal interpretation of privacy-oriented decentralized financial tools.
The ruling effectively limits the scope of government oversight of blockchain protocols by identifying Tornado Cash as a neutral technology rather than a criminal entity.
In immediate response, projects such as Litecoin (LTC), Bitcoin Cash (BCH), and Monero (XMR) all saw a significant spike in demand.
Litecoin price fluctuation | LTCUSDT
The chart above shows how Litecoin's price rise began around November 14th, when US Securities and Exchange Commission (SEC) Chairman Gary Gensler hinted at an imminent departure scheduled for January 2025. It shows how strong it is.
After initially consolidating around $100, Tornado Cash sparked further gains, pushing LTC prices toward the $130 region on Monday.
At the time of writing, LTC price has retreated towards the $122 level, but other important market signals suggest the rally may not be over yet.
Litecoin open interest surges by $225 million in the past 7 days
The LTCUSD daily chart shows that Litecoin price has increased by 75% since November 14th. However, a closer look at derivatives market trends shows that this rally has also been accompanied by a significant increase in speculative demand, which could support further gains.
Coinglass' open interest indicator represents the active capital stock invested in Litecoin futures contracts and helps track short-term trader sentiment regarding major market events.
Comparison of Litecoin open interest and LTC price | Source: Coinglass
Looking at the chart above, Litecoin’s open interest dropped to $404 million on Wednesday. As the market digested the Tornado Cash ruling, investors began placing large bets on LTC.
With capital inflows of $225 million in seven days, Litecoin's open interest reached $629 million on Monday.
When asset price increases are supported by a prolonged increase in capital flows into derivatives markets, strategic investors interpret this as a bullish signal that supports continued appreciation. There are two reasons for this.
First, the increase in open interest reflects increased speculative activity and confidence in the current directional price trend.
Secondly, this signals increased liquidity, which helps maintain upward momentum by reducing volatility and strengthening bullish support at key levels.
Litecoin Price Prediction: Further upside expected if $115 support holds
Litecoin’s bullish momentum remains strong, with the price increasing by 74.8% in 18 days, as shown in the chart.
The Bollinger Bands indicate a continuation of the uptrend, with the price trading above the $116.04 upper band.
If this key support holds, Litecoin could rally toward the next key resistance level at $130, supported by the $225 million in speculative demand observed over the past week. There is.
Litecoin price prediction | LTCUSDT (Binance)
Moreover, the average directional index (ADX) value of 43.95 indicates a strong trend.
Such high ADX values confirm that upward momentum continues as strategic investors continue to support Litecoin.
If the bullish trend persists, the bulls could aim for the $150 target in the coming weeks.
However, a multi-day close below the $115 support could effectively cancel out the short-term bullish momentum.