The price of Litecoin has recovered by a significant amount and with the price still being in an upward trajectory. Further upside movement would be expected but would only be corrective as another drop after its completion looks likely.
- Rising wedge pattern started forming
- Interaction with the $109.356 level would be expected before another downturn.
- If we see a rejection at those levels the price would be set into a downward trajectory below $100 and potentially down to the $83 zone.
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Litecoin Analysis LTC/USD
From yesterday’s low at $94.76 the price of Litecoin increased by 11.74% as it came up to $105.89 at its highest point today around which it is currently being traded. The price is still in an upward trajectory but is showing signs of encountered resistance as the last 15 – min candle left a large wick from its upper side.
An ascending wedge started forming since yesterday’s low with the price retesting its resistance level on the mentioned spike and got rejected again, validating the level.
The price broke the significant horizontal support level at $109.356 on yesterday’s decrease and its retest on the current recovery could be seen, especially considering that the resistance level out of the rising wedge is coming to the intersection of the horizontal level and the descending trendline from the prior decrease.
The rising wedge is a corrective pattern which is why after its completion I would be expecting a downtrend continuation.
Wave structure implies that we could be seeing a five-wave decrease from the 4th of July with the cup and handle pattern being its first two waves and the five-wave decrease being it’s third. That would bring the rising wedge to being its 4th wave correction after which the last 5th wave should develop.
This five-wave move from the 4th of July is the C wave from the ABC correction which started on the 29th of June and is a continuation of the decrease made after an interaction with the $137 horizontal level.
As the C wave ends so will the Z wave of a higher degree from the complex correction count which dates from 12th of June when the 5th wave to the upside of a higher degree ended.
The price target for the expected decrease would be in the $83 zone but this is the furthers I would expect the price to drop as there are other support points above on which the price could end its downward move.