The price of Litecoin has shown strong sellers pressure exhibited in a 13% drop. This could mean that the expected downturn has started with the wave structure verifying the possibility.
- Price fell below $109.35 which is a highly significant horizontal pivot point.
- As it did further downside minor downside movement would be expected before a retest of the broken horizontal level.
- If the price finds resistance there and gets rejected it could initiate another round of selling which would confirm that the downturn has started.
Read: XM Broker Review
From yesterday’s high at $119.84 the price of Litecoin has decreased by 13% as it fell down to $104.225 at its lowest point today. This decrease is showing impulsiveness in its movement which could mean that the higher degree correction has started.
On the hourly chart, we can see that the price fell below the horizontal support at $109.35 and is currently being traded inside the lower range but is still above the presumed 3rd wave’s ending point where it found some temporary support.
Looking at the Elliott Wave count you can see that I would be expecting that this downfall would continue for a bit longer with the price coming down to $100.6 before coming back to the broken horizontal support level for a retest after which it would continue moving to its significant resistance zone at the 0.382 Fibonacci level.
If this movement develops like expected it would mean that the higher degree downturn has started and we have seen its first wave developing as corrective one.
There is still a possibility that the price could continue moving to the upside for another minor increase but the wave structure implies that the bullish upswing ended as I have counted 5 waves out of the last ending wave of a higher degree.
$109 horizontal level is a highly significant one as it could be viewed as a horizontal pivot point as it was the most significant horizontal support level since the start of the bear market until June 2018 when it finally got broken.
The price managed to go above it from Monday but hasn’t come to the next significant horizontal resistance level which in conjunction with the previous one is forming a resistance zone.
As the price entered the sellers’ territory, strong sellers pressure led to a decrease of around 13% below $109 and I don’t believe that is going to go above it now that the decrease has been made.
A retest of its resistance could initiate another round of selling which would confirm that the price of Litecoin has reached its high.