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 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.