The price of Litecoin has interacted with its significant resistance level from the descending triangle in which it is correcting from 4th of May, as the price came up from $73.7 to $79. As the interaction ended as a rejection the price has started moving to the downside and is currently being traded at around $76.3.
- Correction still likely in play as the wave structure implies
- The price increased but is still inside the territory of the descending triangle
- The further downside would be expected before a decisive move to the upside
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Litecoin Analysis LTC/USD
From yesterday’s high at $78.433 the price of Litecoin has decreased by 6.03% today, measured to its lowest point at $73.7. Since then, recovery has been made with fast momentum as the price increased to $79 which was a 7.19% increase in a matter of 15 minutes.
The price is currently being traded at $76.3 as the spike to the upside was an interaction with the descending resistance from the triangle in which the price is correcting from Saturday. The correction developed after the price broke out from the descending triangle of a higher degree but since it hasn’t developed in a five-wave manner and rather ended on a three-wave move this breakout will most likely not continue pushing the price further to the upside.
After the presumed ABC to the upside ended we have seen and lower degree ABC move followed by a five-wave move to the upside after which another ABC correction developed.
These three structures could have constituted a higher degree three wave correction in which case today’s increase could be the beginning of the next move to the upside that is set to push the price for a breakout to the upside, but as the price got rejected by the descending triangles resistance and considering that the price hasn’t interacted with some of the significant support levels I believe that further downside movement should be expected to around $72 level or even further below.
Even if we see a breakout to the upside from the descending triangle I think it could be the third wave out of the higher degree move to the upside out of which the first ABC correction to the upside would be its first wave.
As the price is now in a downward trajectory we are going to see if the projection holds, as if the price falls below $74.5 I would consider changing it.
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