Litecoin (LTC) price is up 11% in three days, but technical indicators indicate the rally is not over yet.
The number of short-term holders holding LTC is also growing steadily, signaling increased interest among traders in the coin.
The RSI index is approaching the overbought zone
Over the past two weeks, the Litecoin RSI has risen from 60 to the current level of 67. This indicator serves as a critical technical analysis tool, acting as a momentum oscillator. It measures the speed and change in movement of an asset on a scale from 0 to 100, based on recent advances and declines.
The recent rise in the RSI indicates a surge in buying pressure, indicating increased investor interest and a more active market. However, it is important to note that the index is approaching the overbought zone, signaling the possibility of entering a consolidation phase or a short-term pullback. The number of Litecoin holders continues to grow.
According to the analytical platform IntoTheBlock, between February 18 and March 25, the number of short-term LTC holders grew from 429 thousand to 529 thousand. It was this cohort of investors that became the driving force behind the current rally.
