In the last 24 hours, the price of Litecoin has decreased impulsively to the downside but has found some temporary support. The decrease would be expected to continue but soon we are to see the start of another increase as the recovery should continue.
- Further decrease could be seen to the $85 support zone before the 2nd wave ends.
- After the completion of the current retracement, another upward move would be expected as the 3rd wave out of the starting upward wave is to develop.
- If the price recovery gets stopped out at the $122 horizontal level on the three-wave move we have likely seen another corrective structure to the upside after another impulsive downfall.
- But if the price manages to impulsively push the price above the $122 level and stay there on the next retracement it would more likely mean that we are seeing an uptrend continuation.
Litecoin Analysis LTC/USD
From yesterday’s high at $100.6 the price of Litecoin has decreased by 9.73% as it fell to $90.32 at its lowest point today around which the price is currently being traded.
Some temporary support is found as the price decrease has been stopped out for the time being but we are yet to see if this support serves as a reversal point or are we to see the decrease continue.
On the hourly chart, you can see that the price to retest the horizontal resistance level on yesterday’s high and got rejected there which is why a breakout occurred below the lower ascending trendline.
This minor breakout indicates that the first-wave increased ended with the price retracing after.
If we are seeing the 2nd wave out of the higher degree five-wave move it could continue its downward trajectory to the support zone at $85-83 as to establish firm support before another impulsive move might occur.
Prior to the five-wave recovery, we’ve seen a complex WXYXZ correction ending from the yearly high at $144 which is a decrease of 44.62%. If this correction was another retracement in the uptrend from the 15th of December the now seen five-wave recovery could be the start of the next impulse wave as the uptrend continues.
However, more likely we have seen the completion of the bullish period from 15th of December as the 5th wave of the Minor degree ended at $144 level. If this is true, then we are now seeing the higher degree correction to the downside out of which the complex one would be its first wave.
That would make the recovery seen from last Wednesday the corrective upside wave before the price stars falling more impulsively to the downside. In that scenario, the increase now projected to be the five-wave move would end as a three-wave one potently as an interaction with the $122 zone.
If the price doesn’t increase above the $122 horizontal zone and the rejection there pushes it back below $100 the likelihood of further decline would increase, but if the price starts moving impulsively above the level and finds support at the $122 zone on the next retracement, we would likely be seeing the uptrend continuation.