Litecoin OI Surges 40% After MEI Pharma Bought  $100M LTC

Litecoin (LTC) price dropped by about 6% in the last 24 hours as it traded around $116. The altcoin had risen by about 24% in the past one month as big institutions set their eyes on it.

The attention drove mixed reactions from the crypto community. Among them were open interest (OI) and liquidation clusters that depicted the disparity in view.

Despite Litecoin price trading above the $100 mark, MEI Pharma did not fade from getting a share of LTC’s supply. This led to a spike interest to purchase the coin.

How Is OI Making Litecoin Stand As An Outlier?

The cumulative Open Interest change across coins dropped by more than 3% following the recent market slowdown. Per Hyblock Capital, the OI of most coins was below the 20% level while some stayed in the negative zone.

For Litecoin, it was different as its OI rose by 40% for the same period. LTC traders were more interested in investing in the coin despite its high price compared to its position a few months ago.

Litecoin also had a secret feature that was yet to be utilized. Since crypto users embrace anonymity, LTC’s privacy layer could attract more attention.

MEI Pharma Buys 100M For Its LTC Treasury

Nasdaq-listed MEI Pharma (MEIP) went big with a Litecoin treasury, adding to its drug development strategy. The lead investors advising on the plan were Charlie Lee and GSR. The firm became the first in the U.S. after it bought $100 million worth of LTC.

MEIP were attracted by the low fees and quick transaction speeds, which were essential before integrating their payment systems.

Also, the acquisition could have stemmed from the rising odds of approval (roughly 81%) by December 31 this year, as per Polymarket.

The MEIP stock price rose briefly on the news but dropped by 2.96% for the day. Its price was $4.90 at the time of writing as per Yahoo Finance.

Still, it was unclear if adopting a LTC strategy would have a similar impact as seen in firms that have adopted Bitcoin (BTC) strategies. Metaplanet (MTPLF), among other traditional stocks, had gained attention after adopting a crypto strategy.

Following MEIP’s acquisition, price action started to shape differently.

How Liquidity Could Impact Litecoin Price Action

The liquidation heatmap showed that some traders were betting on the Litecoin price revisiting the $100 zone. The zone was previously responsible for the surge to $130. Here, positions valued between $200K and $250K were placed.

The orders just below the $120 level had been activated, and the price was declining further.

From a numerical perspective, LTCUSDT has been confined within a symmetrical triangle since early 2020 on the weekly chart. However, price was above the 50 SMA.

The highest flow volume was at $85 per VRVP. If LTC invalidated the upper resistance, price would likely hit $140 as the next target. Further advances would take it to $180, $285, and eventually $410.

Final Take on LTC Price

With the Wall Street setting their eyes on cryptos like Litecoin, it was enough proof that exposure was at new peaks. This would influence prices soon and as we advance. However, it did not guarantee a price spike.