A breakout to the downside has been seen from the cup and handle formation with the price going below the significant horizontal support level at $109.3 in an impulsive manner.
This is considered as a continuation of the downfall which started on the 29th of June and is most likely the Z wave from the complex correction count after the yearly high was established.
- Another downfall has been seen in a five-wave manner which could be the third wave out of the ABC correction which is the sub-wave of the Z wave.
- The price entered the lower range below the significant $109 level which is considered to be the start of the resistance zone.
- This could be an early indication that the price of Litecoin topped out for the time being but as the Z wave ends we could see an uptrend continuation after an establishment of support.
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Litecoin Analysis LTC/USD
The price of Litecoin has decreased by 17% from yesterday’s high at $120 measured to today’s low at $99.65. The price spiked further down to $94.4 but the hourly candle closed above the minor horizontal level.
On the hourly chart, you can see that the price of Litecoin is struggling to establish support as a breakout to the downside occurred from some of the significant horizontal support levels out of which the most significant one is at around $109.35.
The price retested the horizontal level from the lower side after it was pushed below it, founding resistance again and causing another downfall to the next minor horizontal level which is currently being tested for support.
The price of Litecoin moved in an impulsive five-wave manner like expected as a breakout from the cup and handle formation started yesterday.
This decrease is a continuation of the downfall seen from 29th of June till the 2nd of July after which an ascending ABC correction developed in conjunction with the cup and handle.
As the cup and handle is a continuation pattern and the price started moving to the downside we have likely seen the third wave out of the presumed Z wave from the complex correction count which started after the completion of the five-wave impulse on the 12th of June when the price of Litecoin reached $144.
This would be the ending wave of the mentioned complex correction which is why after another sell-off we could see the uptrend continuing but if we’ve seen the end of the five-wave impulse of the higher degree on the 12th of June this could only be the first wave out of the higher degree correction.