Litecoin |A pull back before the next rally

Previously we have seen that the price action of Litecoin was expected to have breakout from the resistance of triangle. Now the price action has broken out the resistance and spiked beyond $94.

On daily chart, the price action of LTC has found a strong resistance at $91 and formed double top at this level. The priceline has also good supports of exponential moving averages 10 and 21 as well.

On daily chart, the price acton of LTC has also found a good up trend line support. Now the price action is moving down towards this support again. But in order to re-test the support breaking down of 25 SMS is must. The Other SMAs with the time period of 50, 100 and 200 are also moving up to provide the support to price action.

On 4-hour chart, the price action of LTC is also forming a bullish Shark harmonic pattern. The potential reversal zone of this pattern starts form $78.73 and ends at $77.18. If the priceline will not take bullish divergence from this PRZ level then it may re-test the support of up-trend line on daily chart and from there it will start the next bullish rally.

We have a very good supports of 25 SMA on daily chart and potential reversal zone of bullish Shark at same level. If these levels will be broken down then the priceline may move more down to re-rest the support of the trend line.


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