The price of Litecoin has fallen below $90.5 which was a significant indication level, which means that the increase seen over the weekend was correctional in nature.
As this has now been validated the expected decrease could be stronger than initially expected but in either way, I would be expecting it to go below the lower horizontal support level at $84.2.
- The price is now likely headed for further downside with equally strong momentum like we’ve seen last week on Thursday.
- If this kind of move develops it would set to push the price below the $84.2 level which would mean that the price entered the territory of the 2nd wave which cannot do on the 4th wave.
- If this does occur it would mean that the five-wave impulse ended last Thursday which is why a higher degree correction is taking place.
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Litecoin Analysis LTC/USD
From yesterday’s high at $91.53 the price of Litecoin has decreased by 6.16% and is currently being traded at $86. The price started moving with strong momentum to the downside on yesterday’s interaction with the horizontal support level from the prior upper range and continued on during the day.
On the hourly chart, you can see that the price of Litecoin has started falling below the second horizontal support level at $86.4 which is the ending point of the 1st wave of a higher degree.
This means that the increase seen over the weekend was corrective as it ended as a three-wave correction. This was validated by the price going below $90.5 which was the significant invalidation point.
We are now most likely seeing the development of another downside move like we’ve seen last week after Thursday’s high was reached. Since the recovery that followed was correctional it could mean that another five-wave impulsive move is coming of an equal length and would be the third wave out of the higher degree correction if we haven’t seen the end of the five-wave impulse to the upside.
If we have seen end of the five-wave impulse to the upside the movement could also be the 3rd wave from the higher degree five-wave move to the downside as well, in which case the price of Litecoin is set to go further lower below $84.2 which is the second horizontal level below which is the starting point of the second wave of the higher degree move which the price cannot enter on the 4th.