The price of Litecoin has found some temporary support and now that it has we are likely to see a minor recovery to some of the broken support levels or other significant resistance where if we are seeing the starting downtrend would end as a rejection and will propel into further downside to $83 area at first.
- Price action made an expanding channel to the downside.
- Interaction with its resistance level could be seen if the price started recovering to the upside.
- Further downside would be expected if it ends a rejection.
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Litecoin Analysis LTC/USD
From yesterday’s open at $105.664 the price of Litecoin has decreased by 6.56% today, coming to $98.7 at its lowest point. The price is currently being traded at $101.96 after it came back to the levels of the yesterday’s open and found resistance there causing it to start moving to the downside again.
On the hourly chart, you can see that the price found support on the still unconfirmed ascending support level out of the previous rising period. From last Thursday the price has moved in a three-wave manner but with the previous move could have been a five-wave one which has made an expanding channel to the downside.
We have likely seen the completion of the first downside structure with the price now expected to move to the upside on a minor correction, likely ending as interaction with some of the significant resistance levels.
The first significant resistance would be at $109.356 horizontal level which is considered as the starting point of the resistance zone.
The next one would be at the expanding channel’s resistance which would be slightly above the prior level but if the interaction takes a bit longer then projected the levels could intersect on the interaction which would bring the resistance point back around the vicinity of $109.
As we have likely seen the ending of the five-wave impulse from 29th of April a breakout to $83 area would be expected shortly which is the first significant support area.
As this mentioned impulse from 29th is the sub-wave of the ending 5th wave of a higher degree count the price is likely to continue moving past $83 further to the downside as we are seeing the development of the higher degree downside move.
The post Litecoin Price Analysis: Corrective Increase Expected Before Drop to $83 appeared first on Blockonomi.