The price of Litecoin increased past the significant resistance point last Friday, pulling back over the weekend for a retest of support at the broken levels.
As support was present the increase continued pushing the price above the second significant resistance level at $122.32 and came up to around $127 at its highest point today.
- As the price came inside the seller’s territory and is close to the full development of the five-wave move a pullback would soon be expected.
- This could be the third structure from the starting downtrend if the 5th wave of Minor count ended last Thursday which I believe that it did even though the price has made a higher high today.
- The first significant support area for the price of Litecoin on the way down would be at around $83.
Litecoin Analysis LTC/USD
Last Friday the price of Litecoin increased by around 9.6% coming from $109.96 to $120.47 at its highest which has pushed the price above the first significant resistance level at the descending channels resistance.
The price came down for a retest of support at the broken level over the weekend and as it found support it continued moving to the upside above the prior high level, coming to $126.8 at its highest point today.
The price came above the 0 Fibonacci level which was the ending point of the prior high and above the next highly significant horizontal level at $122.32 above which it is considered to be the sellers’ territory.
I was expecting the price to start moving to the downside after an interaction with the first significant resistance at the descending channels resistance but as the price continued increasing further past the other significant resistance point we have likely seen the development of another five-wave move to the upside.
As the move looks finished or near completion and especially considering that the price has entered the seller’s territory I will be shortly expecting the start of the impulsive move to the downside.
Even though we have seen a five-wave increase I don’t believe that its the starting upside wave, but is more likely the second correctional structure after the first one currently labeled as a WXYXZ correction ended.
The price did make a higher high but this can also be seen on a corrective move usually ending as a running flat. If we are soon the see the start of an impulsive move to the downside the first significant support zone for the price of Litecoin would be at around $83 area.