- Litecoin briefly touched $130 on Monday, helped by improved sentiment for privacy-focused coins after a US court overturned sanctions imposed on Tornado Cash.
- Litecoin’s price has risen 75% since Gary Gensler’s resignation from the US Securities and Exchange Commission was confirmed on November 14th.
- Open interest in Litecoin topped $620 million on December 2, reflecting a 56% rise in futures contracts in the week following the Tornado Cash decision.
Litecoin’s price topped $130 on Monday, helped by improving sentiment for privacy-focused coins after a United States (U.S.) court overturned sanctions imposed on Tornado Cash.
Will the LTC price rise to $150 in the coming week?
Litecoin Price Hit Three-Year High as Markets React to Tornado Cash Decision
On November 26, a US court overturned sanctions imposed on cryptocurrency transaction mixer Tornado Cash, sparking an immediate bullish reaction to major privacy-focused assets including Litecoin.
According to a Reuters report, an appeals court ruled that the US Treasury acted beyond its authority when it sanctioned Tornado Cash in 2022 for allegedly facilitating cybercrime and the laundering of more than $7 billion, particularly by bad actors such as North Korean hacking groups.
The court’s decision to lift the sanctions has significant implications for the legal interpretation of privacy-focused decentralized financial instruments.
By recognizing Tornado Cash as a neutral technology rather than a culpable entity, the ruling effectively limits the extent of government oversight of blockchain protocols.
As a result of the immediate reaction, projects such as Litecoin (LTC), Bitcoin Cash (BCH) and Monero (XMR) witnessed a significant increase in demand. 
Litecoin price | LTCUSDT
The chart above shows how Litecoin’s price rally began around November 14th, when US Securities and Exchange Commission (SEC) Chairman Gary Gensler hinted at his imminent departure, scheduled for January 2025.
After initially consolidating near the $100 mark, Tornado Cash sparked another rally, bringing the LTC price close to $130 territory on Monday.
While the LTC price is back at $122 at the time of writing, other major market signals suggest the rally may not be over just yet.
Open Interest in Litecoin Increases by $225 Million in the Last Seven Days
The daily chart of LTCUSD shows that the price of Litecoin 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 potentially support further growth.
The Coinglass Open Interest metric, which displays active capital invested in Litecoin futures contracts, helps track the sentiment of short-term traders regarding key market events.
Litecoin open interest and LTC price | Source: Coinglass
Looking at the chart above, open interest in Litecoin fell to $404 million on Wednesday. As markets digested Tornado Cash’s decision, investors began betting big on LTC.
After $225 million in capital inflows in seven days, Litecoin’s open interest hit $629 million on Monday.
When rising asset prices are supported by a prolonged period of increased inflows into the derivatives market, strategic investors interpret this as a bullish signal to support the ongoing rally for two reasons.
First, the increase in open interest reflects increased speculative activity and confidence in the current directional price trend.
Secondly, it signals increased liquidity, which helps maintain upward momentum by reducing volatility and strengthening bullish support at key levels.
Litecoin Price Forecast: More Upside Ahead If $115 Support Holds
Litecoin’s bullish momentum remains strong, with prices up 74.8% in 18 days as shown in the chart.
Bollinger Bands indicate an extended uptrend, with the price trading above the upper band at $116.04.
If this key support holds, Litecoin could rise towards the next key resistance at $130, supported by the $225 million speculative demand seen last week.
Litecoin price forecast | LTCUSDT (Binance)
Moreover, the Average Directional Index (ADX) reading at 43.95 signals a strong trend.
These high ADX readings confirm sustained upward momentum as strategic investors continue to support Litecoin.
If bullish sentiment continues, bulls could target the $150 target in the coming weeks.
However, a multi-day close below the $115 support could effectively erase the near-term bullish momentum.
