Sideways movement has been seen on the chart of Litecoin from 14th of June with the price being below last Thursday’s low which indicates a corrective stage.
Considering the fact that prior to this ascending structure that ended with a breakout to the downside, we’ve seen the completion of the higher degree five-wave impulse after which a corrective descending triangle followed, we could be seeing the second wave of the higher degree with the third one to the downside starting to develop from Saturday.
- The price came up from yesterday’s low but failed to keep up the bullish momentum before the first signs of struggle.
- A retest of support is currently being made at the minor horizontal level.
- Further downside is expected to at least $126.5 and potentially even further below if we are seeing the development of the third correctional wave of a higher degree.
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Litecoin Price Analysis LTC/USD
The price of Litecoin has been moving sideways from yesterday’s open as it came down by 4% at first reaching $133.25 on the yesterday’s low but from there made a recovery of 2.91% but is currently being traded at $135.7.
On the hourly chart, you can see that the price of Litecoin came down below the last Thursday’s low after an attempt for a breakout to the upside failed.
As the price attempted to move above the prior high it encountered strong resistance around its vicinity and has been stopped out at $144 level causing it to start moving to the downside in an impulsive manner as the majority of the decrease occurred in a matter of hours on Sunday.
The price came up to the levels of the prior high which was the 5th wave of the previous five-wave impulse wave to the upside after which we’ve seen a descending triangle forming.
As the price increase that followed ended as a three-wave increase we could consider it is the part of the same correctional structure as the descending triangle which would mean that from 14th of June we have seen a three-wave correctional structure which is the second wave of the correction from the higher degree.
If this is true then the price has now started developing its third wave of a higher degree to the downside which is set to push the price back below the 14th low at $126.44 or at least to those levels.
As sideways action has been seen we are definitely not seeing an impulsive move from 14th this sideways movement implies that the structure is correctional. If the price starts decreasing again from here I would be expecting a move with the equally strong momentum to that made on Sunday.
Another possibility would be that the price finds support around the current levels and stars increasing from here in which case further upside movement could be expected past the prior high at $144, but considering that we have seen a downside move from Saturday it will likely continue further before doing so.
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