Litecoin Analysis: Is LTC Headed for a Correction?

The price of Litecoin has spiked down below the significant horizontal level at $90.5 which could indicate that we are seeing the three-wave correction from last Friday to the upside instead of the next impulse wave.

If this is true, then the price is now headed for further downside movement as the five-wave impulse ended last Thursday with the downfall made after being the first wave of the higher degree to the downside and the recovery seen over the weekend being it’s second.

  • Litecoin has fallen below its significant indication level which means that we are likely seeing the start of the next impulsive move to the downside shortly.
  • Last Thursday’s high is in that scenario the ending point of the increase was seen form 26th of April.
  • The further downside would be expected from here, although confirmation is awaited.

Litecoin Price

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Litecoin Analysis LTC/USD

From Monday’s open at $96.116 the price of Litecoin has decreased by 7.32% as it came down to $89 on the same day.

Since yesterday’s low, a small recovery has been made with the price currently being traded at $90.7 but the momentum looks like it’s slowing down as a lower high has been made compared to the previous one, made close to today’s open.

Looking at the hourly chart we can see that the price came down to the significant horizontal support level last Friday around the vicinity of the 1st wave out of the five-wave impulsive move which started on 26th of April which could be the wave 4 if the impulse hasn’t ended.

As strong sellers momentum has shown last week the downfall made could be the start of the higher degree downside move as the five-wave impulse ended on Thursday which is soon to be verified.

An interesting situation occurred yesterday for the price action development of Litecoin, namely the price fell below $90.5 level which was the significant indication level of labeling behind the increase seen from last Friday.

If the downfall made on Friday was the 4th wave the increase that followed should be the start of the next impulsive move, but as the price fell below the mentioned level and spiked down further it entered the territory of the presumed 2nd wave which it cannot do on the 4th wave which is why I am considering that more likely the five-wave impulse ended and that the increase seen ended as well as the three-wave correction after the initial downfall.

What’s interesting is that the price made a large wick to the downside so we still cannot say conclusively that it entered the 2nd wave’s territory as the candle hasn’t closed inside its territory and the price made a recovery above the significant horizontal level.

We are shortly going to see the proper validation but for now, it more likely looks like the price is heading further down as the five-wave increase from 26th of April likely ended.

The post Litecoin Analysis: Is LTC Headed for a Correction? appeared first on Blockonomi.

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