The price of Litecoin has been stuck in a horizontal range over the weekend with the price retesting its outline levels on multiple occasions with the price being below the horizontal median point from the resistance area in which it is stuck in since the 7th of June.
- I would be expecting further downside movements as I think that we are seeing a consolidative range before another impulsive move to the downside.
- A breakout direction from the current range could indicate the possibility.
The price of Litecoin has decreased last Friday by around 4.53% as it came down from $123.453 to $118 area and has been stuck inside this horizontal range over the weekend currently being traded at $120.68.
Looking at the hourly chart, you can see that the price came down below the significant horizontal level at $122.32 on a strong red candle indicating sellers presence and hasn’t come up above the significant level since.
As the price has been stuck in a horizontal range we have seen multiple retests of its outline levels with the price retesting again its upper level today founding resistance again, indicated by the last few hourly candles.
This horizontal range could be the 2nd wave out of the starting five-wave move to the downside out of which the first one would be the decrease seen from Friday’s open.
This five-wave move to the downside is expected because prior to its formation we’ve seen a three-wave move to the upside after another impulsive move which could be another three-wave decrease of a higher degree and would be considered as the Z wave from the complex correctional count.
As we’ve seen the completion of the bullish increase on the 12th of June when the price of Litecoin reached $143 the structure that followed and pushed the price of Litecoin to $113 is most likely some kind of a complex correction which is being prolonged by two more waves as the bullish spike seen after has developed in a three-wave manner.
If we see a breakout to the downside from the current horizontal range the projected scenario in which the price of Litecoin would be expected to go below the lower horizontal level at $109 would look highly likely but if we see a recovery to the upside with the price managing to hold above $122.35 it could mean that we have seen the completion of the complex correction.
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