A Glimmer of Hope in Litecoin! (LTC)

Hi friends! I hope you're all doing well. Let's take a look at Litecoin! Looking at the four hour chart here, we can see that some interesting changes have materialized. After dropping slightly from the bear flag, Litecoin managed to reverse above the top of the falling parallel channel and the critical resistance level. This is a very nice milestone for the bulls, assuming they can hold it. Looking at the volume, we can see that it's very low, as most traders are waiting to see further developments before jumping in. The MACD is continuing to expand to the upside, which is evidence that LTC could try to test the bottom of the 50 EMA (in orange.) With that said, it's important to understand that we don't have confirmation that the critical level is supportive yet. You can see on the chart, that for the past two candles, LTC has been sitting right on top of the critical level. That is LTC trying to define the 61.8% retrace as new support. It could hold, or it could fail. That's why it's important to wait to see what the market does, when it's testing important levels. Most traders know this, and that is reflected in the low volume. They're waiting on the sidelines, to see what happens. If we start to rally higher, that will be confirmation that LTC has found temporary support on the critical level. If it breaks back down, we can then view this as yet another failed breakout attempt. All-in-all, mixed signals are starting to develop in the crypto space. I'm seeing some bullish reversals, and some bearish continuation moves. I think this is a point where it's best to sit back and watch the market, and let it decide which way it wants to go. Upside resistance lies at the 50 EMA (in orange,) and then the 200 EMA (in purple,) followed by the 50% retracement level. On the downside, the critical support level is right below current price action. A break below that will send LTC into the top of the falling parallel channel. If it re-enters the falling parallel channel, the next downside support would be at the pink trendline.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media! Good luck trading everyone.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

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-JD-