The price of Litecoin has experienced a recovery over the weekend but has decreased by over 10% from yesterday’s high. As the price is currently retesting the horizontal support level we are yet to see if the decrease continues.
- If the price finds support at present levels the likelihood of another increase will increase.
- If we see the price going below the present levels an interaction with the $109 level would be expected.
- As the price of Litecoin got rejected above the last significant horizontal level at $137 and formed a sideways range before a downfall I don’t believe that the increase would continue.
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Litecoin Analysis LTC/USD
Over the weekend the price of Litecoin has been increasing and has recovered by over 18% as it came up from Friday’s low at $113.558 to its highest point on Sunday at $135.
After reaching the vicinity of the significant horizontal resistance level the price has started falling down with an equally strong momentum but managed to maintain above the second one at $122 which is currently being retested for support.
On the hourly chart, you can see that the price fell below the second significant horizontal level on Friday after which I was expecting a continuation to the downside and interaction with the third one at $109.35 but the price started increasing impulsively to the upside instead.
This means that the previous downfall ended on the third wave and is most likely the part of the same correctional structure from 12th of June.
If this is true, we could be seeing the start of another impulse wave to the upside but as the price decreased by over 10% from yesterday I don’t believe that’s likely. If we are seeing a five-wave increase, its ending point would most likely be around the vicinity of the prior high, slightly above $137 area.
The price is currently retesting the $122 level for support which could be viewed as the pivot point so if the price finds support there the possibility of another increase above $137 would look likely, but if the price continues moving impulsively to the downside we could have seen the completion of the three-wave recovery before further downtrend continuation.
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