Litecoin has continued increasing since yesterday’s open and has managed to exceed the prior high without going below the $84.3 level which has changed the count into a bullish one.
This increase is now likely to continue as the 5th wave should develop fully to some of the major resistance points.
- The price held above the significant horizontal level which invalidated the correction count.
- We are seeing the continuation of the breakout momentum from 29th of April.
- Soon a correction is to take place as the price is in its ending wave.
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Litecoin Analysis LTC/USD
The price of Litecoin has been trading around $87 on yesterday’s open and from there increased by 9.58% measured to the highest point the price has been today which is at $95.411.
Since then, the price has pulled back and is currently being traded at $92.4 but with the price being in an upward trajectory this could only be a small retracement before further upside.
Looking at the hourly chart, you can see that the price hasn’t gone below the $84.3 level which was a significant invalidation level of the bullish count.
As further upside movement has been seen since yesterday’s pullback we are likely seeing the development of the five-wave move rather than a three-wave correction like presumed before.
If this is true then further increase would be expected as the 5th wave should develop fully and the most optimal price target for its completion would around the vicinity of the high made on 3rd of April or even further above to the significant horizontal level at $109.356.
This expected increase would be the ending wave of the increase which started on the 29th of April when the price of Litecoin was sitting at $69.5 inside the territory of the descending triangle from which a breakout was made to the upside.
This breakout momentum was at first views as correctional but since we have seen the price hold above the mentioned significant horizontal resistance and continued on increasing it is now being viewed as an impulsive move.
The upward move has still more room to go but as we are seeing the ending wave it is likely to end soon as interaction with some of the significant resistance levels out of which the $109.356 is the most significant one.
I would be expecting that the interaction ends a rejection with the price starting to move to the downside after and would most likely go back to some of the significant support levels which were broken on the way up.