The price of Litecoin decreased from yesterday coming inside the lower horizontal range which is considered as a support/resistance zone, seen on a higher time frame.
As the price managed to stay above the last horizontal level the possibility of further uptrend continuation still stands, but considering the momentum seen I don’t believe that’s likely at this point.
More likely we are seeing the start of the downtrend as the wave structure looks like it is developing a five-wave structure.
- Price needs to go below $109 before the downtrend confirms.
- As the price is recovering today a retest of the $122.32 level looks likely.
- Further downside movement would be expected after the interaction with the significant horizontal level.
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Litecoin Analysis LTC/USD
From yesterday’s high at $130.322 the price of Litecoin has decreased by 13% coming to $113.36 at its lowest point and even spiked further to the downside coming to $110.69 but the hourly candle closed above $133 leaving a wick on the hourly chart.
On the hourly chart, you can see that the price of Litecoin fell inside the territory of the lower horizontal range between the $122.32 level and the $109.356 horizontal pivot.
This area is highly significant as it was considered to be the support area from the first half of the bear market and managed to hold the price of Litecoin but was eventually broken on the 10th of June 2018.
Out of this support/resistance, the $137 horizontal level was its furthest level and considering that the interaction with it ended as rejection with an impulsive downside move seen after, we have likely seen a retest of the broken support for resistance before further downtrend continuation.
From 5th till 12th of June we have seen the development of the five-wave move to the upside which was most likely the ending wave of the higher degree as immediately after its completion we’ve seen a sideways range forming before a straight downfall.
This impulsiveness to the downside indicates that the sellers are taking control. If we are seeing the development of the downtrend and from 26th its first wave in a five-wave manner the price is set to go below the last horizontal support level at $109 and would enter the lower range below the support zone.
If this occurs we could view it as a confirmation of the starting downtrend as the price of Litecoin was continuously increasing from 29th of April and made an increase of 112% without a major correctional movement.
That this might not be a correction and instead of a starting downtrend we are yet to see from the development of the last move to the downside, but if it were to develop in a five-wave manner with the price going below the last horizontal level the possibility of the starting downtrend would increase significantly.
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