Friends, foes, animals and aliens, my family of crypto lovers, welcome to this update analysis on Litecoin! Let's get it! Looking at the four hour chart, you can see that LTC has broken out above the bull flag, in a move that has propelled it above the 50 EMA (in orange.) On the current candle, you can see that LTC has since reversed, and is now testing the 50 EMA (in orange) as support, as the 50 EMA converges with the 20 EMA (in blue.) This is actually very important price action, because this is this first time in a few weeks, that LTC has managed to trade above the 50. So, it's only natural that reverse back to it, to test it for support. If the 50 holds, that will be very bullish going forward, and it would likely indicate an upcoming test of the top of the symmetrical triangle (in black.) On the other hand, if the 50 and 20 EMAs fall, we could see a return of the sell side pressure in LTC.
As you can see, I have thrown up a potential inverse head and shoulders pattern, to highlight what may be developing on the chart. If this formation comes to fruition, it will correspond with the bull flag projection, which still indicates a potential for higher prices. A completion of this pattern, coupled with a breakout above the neckline resistance (green trendline) would dramatically increase the odds of a test of the top of the symmetrical triangle (in black.) You can see that a higher high has been formed on the chart, and the current candle is showing an initial supportive reaction off of the 50 EMA. These indications are technical evidence, that we may get more upside, and a potential test of the top of the symmetrical triangle. On the other and, a break below the 50 and the 20 EMAs would be a negative sign, and I would personally sidestep the market at that point. 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.***
-Magic loves you-
-JD-
As you can see, I have thrown up a potential inverse head and shoulders pattern, to highlight what may be developing on the chart. If this formation comes to fruition, it will correspond with the bull flag projection, which still indicates a potential for higher prices. A completion of this pattern, coupled with a breakout above the neckline resistance (green trendline) would dramatically increase the odds of a test of the top of the symmetrical triangle (in black.) You can see that a higher high has been formed on the chart, and the current candle is showing an initial supportive reaction off of the 50 EMA. These indications are technical evidence, that we may get more upside, and a potential test of the top of the symmetrical triangle. On the other and, a break below the 50 and the 20 EMAs would be a negative sign, and I would personally sidestep the market at that point. 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.***
-Magic loves you-
-JD-