Litecoin Price Analysis: LTC Breakout Failed, Further Drop Now Expected

Over the weekend the price of Litecoin has increased slightly but came back to the levels from which the increase was made on today’s low.

This indicates that the price is still in its corrective stage out of which the structure from 14th of June would be its second wave.

Now that the price is in a downward trajectory with strong selling pressure seen we are likely to see further downside to the vicinity of the first wave’s ending point at around $126.

• Breakout to the upside from the minor horizontal resistance occurred over the weekend but ended as a fakeout.
• This invalidates the possibility of the last ascending structure being impulsive and means that we are likely seeing the second wave of the higher degree.
• If we’ve seen the end of the second wave on Saturday when the price came up to $142.6 the price is set to go further to the downside now as the third wave should develop.

Read: Blockonomi’s Guide to Vantage FX

Litecoin Price Analysis LTC/USD

The price of Litecoin has increased from Friday’s open at $135.27 by 6.44% as it came up to $143.985 at its highest point on the next day.

As the price broke out from its minor horizontal resistance level it struggled to keep up the upward momentum and finally, the seller’s took control on Sunday causing the price to retrace back to the levels of Friday’s open around which it is currently being traded.

Looking at the hourly chart, we can see that the price is currently retesting the minor horizontal support level at around $135 and is looking like some support might be there, but considering the seller’s momentum, it is likely to serve as support only temporarily.

We have seen a five-wave impulse to the upside ending on 12th of June after which a descending triangle developed. As the structure that followed hasn’t shown any signs of impulsiveness it could be viewed as the second correctional structure from the higher degree three-wave correction.

If this is true then the impulsive bearish momentum seen from yesterday could be the starting third wave to the downside which would push the price of Litecoin below the first once ending point.

This would mean that the price is now likely headed below $126.18 where the descending triangle apex is or at least around those levels for a retest of support which would occur if the five-wave impulse to the upside hasn’t ended.

If the five-wave impulse to the upside hasn’t ended after a retest of the $126 area we would see a start of the next impulsive increase but if the increase ended which I believe that it did the price is set to go further to the downside below $126 area.

   

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