Litecoin has been moving sideways from yesterday but has started to show first signs of the potently starting downtrend as the price moved below the minor ascending trendline made from last Friday. If the breakout confirms further downside movement would be expected.
- If the price falls below $89.192 it would mean that the increase seen from Friday and over the weekend was correctional.
- If the price continues moving to the downside and goes below $84.1 it would mean that the five-wave increase of a higher degree ended on last Thursday.
Litecoin Analysis LTC/USD
The price of Litecoin has been moving sideways from yesterday and has mostly been hovering around $91.2 without managing to go above $92.5 which was its minor horizontal resistance point.
As the price hasn’t gone up above the mentioned level but a series of minor higher lows have been made and ascending trendline formed but today it got broken with the price spiking down to $89.45 at its lowest point today.
On the hourly chart, you can see that the price went below the ascending trendline which was formed from last week on Friday when the price started recovering after a decrease of around 20%.
Similarly like in the case of Bitcoin the price started to break out to the downside from the current structure but we still can’t say that this is a valid breakout as the price is above the significant horizontal level at $89.192 which isn’t significant as support on itself but is an invalidation level for the assumption that the recovery seen over the weekend is the start of the next impulsive move to the upside.
If we are seeing the 4th corrective wave taking place out of the next five-wave increase the price cannot enter the territory of the 2nd wave which would be below the mentioned level. The price already spiked down below it on Monday which increased the likelihood of the increase being a three-wave correction but the candle managed to close significantly above on the hourly chart which paints an inconclusive picture.
Last week the price reached $107 at its highest point on Thursday which could have been the end of the higher degree five-wave move but it could have also been the 3rd wave with the final one yet to come.
This is soon to be verified as the price is now likely headed further to the downside and if it goes below the third horizontal level seen on the hourly chart it would enter the territory of the 2nd wave from the higher degree and would invalidate the presumption of the 5th wave coming after.