Litecoin (LTC) price gains bullish momentum, extending the previous day's positive move to trade at $92

Litecoin (LTC) price extended the previous day’s positive move to trade at $92 on Wednesday, as markets gauged the potential impact of the Federal Reserve’s (Fed) interest rates decision during the American session.

The central bank is expected to keep the rates unchanged at the 4.25%-4.5% range, but Fed Chair Jerome Powell’s comments would shed more light on the policy amid thawing trade tensions. Planned trade talks between the United States (US) and China could also offer direction later this week.

Litecoin’s recovery from the tariff-triggered crash to $63 on April 7 is quickly forming the basis of a long-term uptrend. The bullish outlook comes as LTC broke above key levels- resistance-turned support at $80, the 50-day Exponential Moving Average (EMA) at around $86, and the 100-day EMA at $92.

LTC/USDT daily chart

A bullish engulfing candle propelled Litecoin’s uptrend past $92 on Tuesday- a level last seen 42 days ago. Now, LTC is encountering resistance at $93, which is also emphasized by the 200-day EMA.

The Relative Strength Index (RSI) indicator’s ascent above the midline toward overbought territory highlights the strong bullish momentum, which increases the odds of LTC hitting $100- a resistance last tested in early March.

A 17.73% surge in Open Interest (OI) highlights a massive influx of new positions in the Litecoin derivatives market. The uptick is evident as traders’ enthusiasm increases, with OI denoting the total outstanding contracts. It is noteworthy that traders are positioning for a move above $100 as Litecoin’s price gains bullish momentum.

Litecoin derivatives data | Source CoinGlass

The chart above shows that the 32.88% rise in trading volume to $1.45 billion amplifies the OI surge. This denotes strong conviction among traders, and liquidation data reveals a strong bias toward long positions.

Short liquidations ($1.60 million) have outpaced long liquidations ($370,000) significantly in the last 24 hours, indicating a short squeeze, where price increases at a level where traders have opened short positions, resulting in rapid buy-ins and closures of short positions. This puts more upward pressure as LTC approaches the resistance cluster between $92 and $95.

Litecoin’s uptrend faces massive supply

Litecoin’s price is encountering robust resistance in the region between $92 and $95, according to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) on-chain metric. Around 204,000 addresses that previously bought 6.83 million LTC in this range could pose a challenge to the uptrend if investors decide to sell to break even.

Litecoin IOMAP model | Source: IntoTheBlock

On the plus side, a breakout above the seller congested area at $92-$95 could accelerate Litecoin above the $100 hurdle.

Litecoin sits on multiple demand clusters, highlighted by the green circles in the chart above. In the event of a pullback below $90, traders would look for tentative liquidity-rich regions around $85 and $82, respectively.