The price of Litecoin fell below its minor support level which could serve as an early sign of weakness with the buyers losing control as the sellers are pushing the price down. If we are seeing the start of the third wave to the downside a lower low would be expected.
- If the third wave is the C wave from an ABC correction it could end around the broken horizontal resistance in the $120 zone.
- But if the price has started developing its 3rd wave from the five-wave move to the downside the support level is to be broken.
- Preferably the price needs to hold above $120 level as entering the lower range would mean further downside for the price of Litecoin.
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Litecoin Price Analysis LTC/USD
From yesterday’s high at $137 the price of Litecoin has decreased by 4.74% today and is currently being traded at $131. The price fell below the minor horizontal support at $134 which was held after the increase seen on Saturday which could serve as an early indication that the price isn’t continuing for another increase and is now likely headed for a lower low.
On the hourly chart, you can see that the price is around half-range of the previous decrease made inside a descending triangle which is why there is still a possibility that we are to see another increase from here but since the price hasn’t managed to come above the prior high on the rise before encountering resistance which propelled it into a downward trajectory I think that the price has now started its third wave out of the starting downtrend.
This third wave could be a C wave from the ABC correction if we are to see a more complex correction developing or its 3rd wave from the five-wave impulse to the downside if we are seeing the starting downtrend.
If the second is true then the price isn’t going to find support around the $118, and would instead fall below the horizontal support level and enter the territory of the lower range.
From 5th of June we’ve seen a five-wave impulse to the upside which is why we are now seeing some kind of a descending move but it is still unclear wheater or not the ending wave of the higher degree ended with the lower degree five-wave move from 5th of June.
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