The price of Litecoin found support on the significant support zone but the recovery that followed hasn’t shown any strong indication that the trend reversal is coming which is why we could see another downside spike below the support zone before the significant recovery could start.
- Price managed to hold above $86.5 which is the upper level of the support zone.
- Recovery attempt has been made but the price is struggling to keep up the upward momentum.
- If we have seen the completion of the complex correction the price needs to find support at present levels and immediately starts increasing impulsively from here for confirmation.
Litecoin Analysis LTC/USD
From yesterday’s high at $92.5 the price of Litecoin decreased today and came to $88.6 spiking even further down to $87.335 at its lowest point today. The price is currently being traded at $89.264 and is consolidating in a minor horizontal range.
On the hourly chart, you can see that the price found support on the significant horizontal zone as it decreased impulsively to the downside which means that the support zone is serving as a strong one.
The price has started recovering from yesterday’s low at around $86.5 and came up by 6.59% after but the increase ended shortly which indicates that the buyers are showing much interest at this point.
The price is currently sitting on the minor horizontal support level from the first recovery wave which could be viewed as the first wave to the upside from the starting impulse.
If the price starts moving below the level a decrease below the support zone or at least a retest of its lower level would look likely as in that case we haven’t seen the completion of the 5th wave from the ABC correction.
But if the price manages to stay above the support zone before showing signs of strong buyers presence we could start to consider that the complex correction ended.
For now, there aren’t any signs of a reversal which is why I think that more likely we are to see another downfall from here in a sharp manner potentially leaving wick on the hourly chart as the price spikes back up above the support range again.
This spike to the downside would enter the buyer’s territory which would activate buying and the momentum would, in that case, get caught for the needed trend reversal.