The price of Litecoin has made over 11% recovery over the weekend but is now showing signs of weakness before it reached the prior high. This could mean that we have seen the top with the first downtrends structure starting to develop, but it could also mean that the previous upside move hasn’t ended.
In either way, shortly a confirmation is to be awaited but since the wave structure is showing that the price has gotten overextended a downturn would start very soon.
- The price increased above the $109.35 horizontal level which serves as an indicative pivot point.
- As it did another increase might occur but since we are seeing the price struggling to keep up the upward momentum I would expect it to continue doing so for much longer.
Litecoin Analysis LTC/USD
From Friday’s low at $104.82 the price of Litecoin has increased by 11.34%, coming to $116.715 at its highest point on Sunday reaching it again today, but has made a downfall to $109.35 horizontal level shorty.
With the price currently being traded at around $112.6, we are seeing a sideways range developing which could mean that the price has encountered strong resitance at those levels.
On the hourly chart, you can see that the price made a recovery over the weekend, as it previously fell down impulsively by 13.75% but hasn’t come up to the prior high level before it started experiencing strong resistance.
This could indicate that the bullish upswing ended last week on the interaction with the 0 Fibonacci level at $118.945. This could also be interpreted by the wave structure which implies that we have seen the completion of the last five-wave move which is the sub-wave of the 5th wave of a higher degree count.
As you can see the weekend’s recovery has been expected but only to the first significant horizontal level at $109.35 if we have seen the completion of the previous five-wave move as it would mean that an ABC correction has started.
The price continued moving past the horizontal level and is now forming a sideways range which could still mean that the corrective structure has started developing but it could also mean that the price is headed for another higher high if the previous five-wave increase hasn’t ended.
The level which is likely to serve as a pivot point for this confirmation would be the mentioned $109.35 horizontal level as it clearly serves as support, so if the price manages to stay above it after today’s interaction it would indicate that another increase is in fact likely.
But if the price continued moving to the downside and enters the lower range it would more likely mean that we are seeing the beginning of the expected higher degree downtrend.