Litecoin found some temporary support forming an ascending triangle as the buyers have managed to make higher highs from yesterday’s open. A breakout to the upside would be expected from the cluster but only to some of the significant horizontal resistance points before further downside.
- First significant resistance is at $109.356 and the next slightly above but they might intersect before the price gets there.
- After an interaction with the significant resistance points, further downside would be expected.
- The first significant support area would be at around $83.
Litecoin Analysis LTC/USD
The price of Litecoin has been decreasing from Monday with strong momentum. The cryptocurrency has depreciated in value by 14.61% from Monday’s high at $115.52 to the low at the yesterdays open at $98.64 which is the weekly low so far. The price is currently being traded at around $104 as it found some temporary support.
On the hourly chart, you can see that the price of Litecoin interacted with the still unconfirmed ascending trendline after which it started forming a cluster above the level which is now starting to look like an ascending triangle with the price stuck below $105.455 resistance level from the upside but higher lows have been made.
This indicates that the buyers are trying to make a recovery buy the sellers are putting strong pressure on the same horizontal level.
If the buyers manage to catch up some traction and regain control temporarily we are going to see a breakout to the upside from the currently seen ascending triangle but I don’t believe that the upward movement would continue past the next significant resistance point which would be at around $109.35 which is the significant horizontal level above which it is considered to be the sellers territory.
The next significant resistance point would be at the formed expanding channel to the downside but if the price takes some time to get to the upside it could bring this level lower since it is a descending one, closer to the previously mentioned significant horizontal one and would eventually intersect it.
Last Thursday we have seen the end of the five-wave impulse to the upside which is the sub-wave of the higher degree 5th wave of the Minute count. If this impulse wave ended it means that even a higher degree count has completed with the price starting a downside movement either as a correctional one or a higher degree downtrend.
The first significant support zone I would expect to see the price of Litecoin after a corrective upside movement would be at around $83 area, but if we are seeing the starting downtrend this support point would only be the first one with the price eventually going below it as well.