Hi friends! Welcome to this update analysis on Litecoin! Looking at the daily LTC chart, you can see that Litecoin is trapped between two support and resistance levels. Just above the current price action, we have the 50 EMA (in orange) which has suppressed the price of LTC since May. Just below, we have a long lasting support level at $50, which originated in May of 2017. So, LTC is being pinched between these two levels, and we're just waiting to see which way it's going to break. If LTC breaks down below the $50 level, the next major support is around $39.11.
I could make a case for calling the recent price action between the $50 level and the 50 EMA a quasi head and shoulders pattern. It isn't the prettiest thing, but there isn't really a standard of symmetry for head and shoulders patterns. Shoulders can occasionally be higher than the head or very small, so I don't generally fret over asymmetrical head and shoulders patterns. In this case, I think it's worth keeping in the back of your mind, but I wouldn't break the bank on it. If we see an upside breakout that takes LTC above the 50 EMA, I will be very impressed. Particularly if it can hold the 50 EMA as support. If we see that, I will probably be a buyer.
There's a huge bullish divergence on the MACD, so that's something that we should definitely keep an eye on. The sell side momentum has been steadily dying, but momentum divergences aren't always the best indicators. The MACD currently looks like it's trying to cross over bearish, adding to the likelihood of further downside, but trying to predict one direction or the other right now is not a wise idea. It's best to wait for LTC to show us what it wants to do. If it confirms below the $50 level, then $39.11 will be in play. If LTC confirms above the 50 EMA, the $57 level is providing additional resistance just above. Keep in mind that LTC hasn't made a major higher high since the all time high, so it's still in a technical downtrend. Until that happens, and a crypto recovery proves itself, the bias remains to the downside.
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-
I could make a case for calling the recent price action between the $50 level and the 50 EMA a quasi head and shoulders pattern. It isn't the prettiest thing, but there isn't really a standard of symmetry for head and shoulders patterns. Shoulders can occasionally be higher than the head or very small, so I don't generally fret over asymmetrical head and shoulders patterns. In this case, I think it's worth keeping in the back of your mind, but I wouldn't break the bank on it. If we see an upside breakout that takes LTC above the 50 EMA, I will be very impressed. Particularly if it can hold the 50 EMA as support. If we see that, I will probably be a buyer.
There's a huge bullish divergence on the MACD, so that's something that we should definitely keep an eye on. The sell side momentum has been steadily dying, but momentum divergences aren't always the best indicators. The MACD currently looks like it's trying to cross over bearish, adding to the likelihood of further downside, but trying to predict one direction or the other right now is not a wise idea. It's best to wait for LTC to show us what it wants to do. If it confirms below the $50 level, then $39.11 will be in play. If LTC confirms above the 50 EMA, the $57 level is providing additional resistance just above. Keep in mind that LTC hasn't made a major higher high since the all time high, so it's still in a technical downtrend. Until that happens, and a crypto recovery proves itself, the bias remains to the downside.
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-