EagleFX

The price of Litecoin has decreased from yesterday and has shown signs of recovery attempt today but the increase has been stopped out at the minor resistance level from the descending triangle in which it is decreasing.

A lower low would be expected before the completion of the descending pattern before a minor breakout but if we are seeing the start of a higher degree downtrend the price would continue moving to the downside after.

  • The price is still above the first significant zone from $109-122.
  • If the price goes below the zone it would confirm the bearish momentum.
  • As the price is currently in a descending triangle it could be a minor correction before another run-up but considering that the wave-structure implies the completion of the upside move I don’t believe its likely.

Litecoin Price

Read: Our Review of the CyberGhost VPN

Litecoin Price Analysis LTC/USD

From yesterday’s high at $136.63, we have seen a decrease of 5.89% as the price has fallen to $128.58 at its the lowest point today, but an immediate recovery to $132.89 afterward has been seen with the price currently being traded slightly below those levels.

On the hourly chart, you can see that the price action created a descending triangle in which it has been bouncing from Wednesday when the impulsive five-wave increase ended.

Now that the price came up to its resistance levels and started getting rejected (as indicated by the last hourly candle) we are likely to see another lower low especially considering that we are most likely seeing the development of the downside five-wave move.

After a lower low to approximately $125 a minor breakout could be seen to the half range of the descending triangle which would be around $136 before the next downturn.

If we have seen the completion of the higher degree impulse wave to the upside on 30th of May the increase seen from 5th of June could be its second correctional move but it could also be the ending wave as it has developed in a five-wave manner.

This means that the price of Litecoin likely started a downtrend after the impulsive wave to the upside ended which would be either a correction of the higher degree or the starting downtrend altogether.

The first significant support/resistance on the way down would be at the broken resistance zone from $109-122 so if the price enters the territory of the lower range the downtrend would start to be more likely, but if the price holds above $109-122 area, the price of Litecoin could continue for another run-up.


Buy Crypto    Trade Crypto
eToro Risk Warning: 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Avatar

Posted by Nikola Lazić

Nikola holds a bachelor degree in Sociology, which gives him an edge as a financial markets analyst, i.e., to better understand the psychology behind the crowd´s positioning. Consequently, his preferred analytical tools are Elliot applications, combined with Fibonacci cluster formations. He started learning more about financial markets back in 2015 and is now a full-time trader.As a crypto expert, Nikola´s approach to the future of the industry favors a more decentralized market that falls in line with a new “anarchic” capitalism trend. His analysis have been praised by some of the most influential people in the cryptocurrency scene, such as Jeff Berwick (founder of The Dollar Vigilante Newsletter), Vit Jedlicka (the president of Liberland), as well as other relevant peers.


All content on LakeLandDigitalMedia.com is provided solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.

Leave a reply . //