Here's Why Litecoin is Likely Headed To Single Digits! (LTC)
Hi friends! Here is an update look at the hourly chart of Litecoin. As you can see, LTC has finally popped up above the falling pink trendline, but it is not a very bullish look. Instead, what's actually happening here, is that price has just broken down from a bear flag, seen best on the daily time-frame. The "flag" portion of the bear flag is highlighted with the two black trendlines. You can see that price broke down below the bear flag (Breakdown) and rallied back up to test the bottom, (Confirmation) which it appears to be failing at right now.
The only thing that can save LTC at this time, is if the recent lows hold, and/or if LTC gets back up into and above the flag. Since we appear to be confirming the bottom of the flag as resistance right now, the chances of a breakdown are increasing. This flag is quite large too. I did some quick price target projections and found that this flag is large enough to produce a fall below $15 for LTC. However, there is slight support at $17.50, and then more significant support at $13.77. But, to be honest, I think it is very likely that we will see LTC in the single digits, sometime in the near future, due to the incredible technical damage that has been done on this chart.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
The only thing that can save LTC at this time, is if the recent lows hold, and/or if LTC gets back up into and above the flag. Since we appear to be confirming the bottom of the flag as resistance right now, the chances of a breakdown are increasing. This flag is quite large too. I did some quick price target projections and found that this flag is large enough to produce a fall below $15 for LTC. However, there is slight support at $17.50, and then more significant support at $13.77. But, to be honest, I think it is very likely that we will see LTC in the single digits, sometime in the near future, due to the incredible technical damage that has been done on this chart.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Comment:
Update: The bulls are trying to defy the odds, buy pushing back up inside of the bear flag, on strong buy volume. As I stated in the analysis, if they're able to get back inside of the bear flag, and then close above it, that would negate the flag altogether. I will be watching as this price action develops...
Comment:
Even if LTC makes another run into the bear flag, it will not be negated as a bear flag unless the top trendline is broken. In the screenshot below, you can see that the bear flag has morphed from what was once a pennant style bear flag, into a more traditional parallel flag.
Comment:
The other thing worth noting is that we could be forming an obscure inverse head and shoulders pattern here. However, the bear flag is currently the primary formation of interest.
Comment:
LTC tried to surpass the bottom of the bear flag (dashed trendline) all day, but failed to get above it. Now, LTC is returning to the downside.