The price of Litecoin has increased by 8.79% from yesterday and has done so in a five-wave manner which could mean that another impulsive move to the upside has started. As the five-wave increase ended we are seeing the development of the correctional movement from which are to reevaluate the possibility.
- An ascending channel has formed in whose territory the price has pulled back again.
- The pullback was a result of the failed attempt for a breakout to the upside as strong resistance was found at the prior high level
- If the price holds above $84.3 another impulse wave to the upside would look likely, but if the price goes below it further downside would be expected.
Litecoin Analysis LTC/USD
From yesterday’s open at $84.94 the price of Litecoin has increased by 8.79% today as it came up to $92.415 at its highest point today.
Since then a minor pullback has occurred with the price currently being traded below $90 as the price entered back inside the territory of the ascending channel which has been formed by the price action from yesterday’s open.
On the hourly chart, we can see that the price increased by with slow momentum and has been struggling to move above the previous high as strong resistance was again encountered at those levels.
After the previously seen increase ended in a five-wave manner, an ABC correction to the downside has developed and now we have seen the completion of another lower degree five-wave move to the upside.
This could indicate another starting uptrend movement as the next impulse wave to the upside develops which we are to see shortly as the move has likely ended which mean that now we are to see a pullback.
If the price doesn’t go below the broken horizontal resistance area before starting to move impulsively to the upside again, we are likely seeing the development of the next impulse wave which is set to push the price above the previous high.
As this would be presumed to be the 2nd wave from the lower degree count it couldn’t go below yesterday’s open at $84.342 which is the presumed starting point of the 1st wave.
If the price goes below the level it would mean that the ascending channel formed from yesterday was corrective and could indicate further downside moves which would, in that case, validate the count in which have seen correctional three-wave move instead on an impulsive one.