The price of Litecoin has started recovering from last week’s low but and manage to pull back above the support zone with strong momentum. It is currently moving sideways since Saturday when the highest point has been made which is why it could be interpreted as consolidation before another rise.
- The first five-wave increase ended with the price now moving sideways.
- Minor ascending trendline is broken but support has been found at the prior low horizontal level.
- Further increase would be expected for interaction with the $109.356 but if we are seeing the development of the higher degree impulse the price would be headed inside the resistance zone again in which case interaction with some of its significant levels would be expected.
Litecoin Analysis LTC/USD
Last week on Tuesday the price of Litecoin came down to around $78 at its lowest point but on the next day started moving to the upside with strong momentum pushing the price back above the significant horizontal support level which was broken on the way down.
Since then we have seen the price continued its increase until Saturday when it came to $104.7 at its highest point.
Now the price is traded at $95.9 as its started moving to the downside again but is still above the level of the previous minor retracement.
Looking at the hourly chart, you can see that the price started to move below the minor lower ascending level but found support on the horizontal support level of the prior low.
As the price made a five-wave recovery to the upside and started moving sideways we could be seeing the development of the 2nd wave out of the higher degree impulse or another correctional upside move.
The WXYXZ correction ended last week on Tuesday which is why the recovery seen could lead the price of Litecoin above $100 again, potentially for interaction with the other significant horizontal level above at $120.
If we are seeing the development of the five-wave move out of which the finished one of a lower degree would be its first wave the price could even go for a retest of the $137 level which is the upper resistance level of the zone in which the price of Litecoin has been until a breakout below its lower level at $109.356 occurred on the 10th of July.
The price is below the zone and we could see a retest of its lower level at $109.356 before another downturn if the five-wave increase was corrective but as the $85-83 area served as a support I don’t believe that the price is headed below it on the next retracement.
More likely we are to see further recovery development after the current sideways range ends, which could be interpreted as consolidative zone after the initial increase.