The price of Litecoin has decreased impulsively from Thursday to Friday when it came down to its significant horizontal support area after which we have seen a slight recovery over the weekend.
This recovery we’ve seen over the weekend could be the start of the 5th wave if it hasn’t ended or it could be a correctional three-wave move to the upside as the 5th wave ended on Thursday.
- The price needs to hold above $90.5 if we are seeing the impulsive move to the upside developing.
- If the price continued moving below $90.5 we have seen the end of the three-wave correction to the upside which means that shortly another impulsive move to the downside would start similar to the one seen from Thursday to Friday.
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Litecoin Analysis LTC/USD
Last Thursday, the price of Litecoin came up to $106 at its highest point from where a decrease of 19.31% has been seen until Friday as the price came down to $85.564 at its lowest point.
As Friday’s low was made to the significant support area the price started recovering and came up over the weekend by 12.42% measured to today’s open at $96.187. Since today’s open the price has started moving to the downside again and is currently being traded at $91.2.
On the hourly chart, you can see that the price came down to the horizontal support zone around the vicinity of the ending point of the first wave which broke out for the descending channel on the 30th of April which could mean that it was the 4th wave out of the five-wave impulsive move.
It is presumed that the impulsive move ended on Thursday especially considering that the price started decreasing fast with strong momentum in which case we are seeing the correctional structure developing or even the higher degree downside move.
This will soon be verified as the price is now in an upward trajectory and has developed a three-wave structure which if corrective has ended with the price now headed to the downside which already started. But as it is holding above the Friday’s high which is the first wave of the now developing move it could very well be the 4th wave of the next five-wave move to the upside.
If the price manages to hold above $90.51 and starts moving to the upside above today’s high at $96.56 we are likely seeing another impulse wave which would be the ending one, but if it continues its downward trajectory and starts moving below $90.51 we are most likely seeing further downside movement below the horizontal support zone.