The price of Litecoin has reached its minor resistance point once more in an attempt for a breakout to the upside, but the interaction ended as another rejection causing the price to start moving to the downside again.
Currently, a retest of the minor support level is being made so if the price finds support here at the present levels we could see it exceeding the encountered resistance, but it looks more likely that a decrease would be seen from here as the price failed the exceed it on its second attempt.
- Encountered resistance at $139.584 has stopped out the upward movement.
- The minor support level at $134 is currently being retested.
- As the price failed to exceed the resistance point on its second attempt and considering the previous price action structure we are likely to see further depreciation in price.
- First significant support area on the way down would be at around $120 but if we are seeing the second correction structure the third one could push the price back inside the lower range below $118.94
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Litecoin Price Analysis LTC/USD
From yesterday’s open at $132.687 the price of Litecoin has increased by 5.19% as it came up to $139.584 at its highest point on today’s open, but since the price came up to those levels a decreased of 3.49% was made with the price currently being traded at $135.44.
The price came up to the significant horizontal resistance point with whom an interaction has been made on Saturday ending as a rejection, causing the price to move to the downside below $134 which is a minor support point.
As another attempt for a breakout above the minor resistance level ended as another rejection the price started moving to the downside again but has maintained holding above $134 for now.
Previous to this sideways movement we have seen the completion of the five-wave impulse to the upside after which a descending five-wave triangle has developed.
This could indicate that the currently seen sideways movement is the second correctional structure from the starting downtrend with the price being stopped out on two occasions below the prior high. If the price starts decreasing further from here and goes below $134 again further downside could be expected to the first significant horizontal level at around $120 area where the horizontal level is forming a zone with the 0 Fib level.
But if the price doesn’t find support there and enters the lower range we could see significant depreciation in value for this cryptocurrency.
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