We need the price to break the upper resistance line to get a buy signal, which could be seen soon as the broke the resistance, but we have to wait for a breakout and can’t make any speculation - very important. If it occurs, just watch the next resistance which is the previous uptrend line (red dotted line on the chart) that formed in november / early december. Once it breaks that, it’s going bananas.
If it doesn’t occur, we’ll stay inside of this ( in case you’ve already forgotten) and eventually bounce off the main uptrend, which nicely coincide with the end of the pattern.
We can see also see others signs in this chart:
1. The price formed a
2. It did it on a very important support line: the 0.786 Fibonacci line
3. And finally if you zoom in, and take a look at the 4h chart… You can see it performed a nice .
EDUCATION: What is a divergence ? As shown below, it occurs when prices reach a new low, but an oscillator (The in this case) reaches a higher bottom than it reached during its previous decline. This kind of divergence is often the best signal of an impending sharp rally.
I’ll close this idea saying that I’m on Litecoin not only based on the I just showed you, but mainly based on the fundamental analysis: it’s a very good payment option, fast, with low fees, and way more convenient that Bitcoin (not difficult I agree). In more, there’s a lot of positive news with Litecoin, with the release of Litepay, futur atomic swap with Bitcoin in 2018, network continually growing, more and more commerçants accepting it, etc etc etc.
I believe it is still very undervalued, and will not be surprised to see a huge rally this year, with more adoption from the mass.
And finally, why couldn’t I contradict myself and end with some speculation to spice up even more things… Could Starbucks starts accepting Litecoin? https://theusacommerce.com/why-starbucks-might-start-accepting-litecoin-ltc-as-payment/