Litecoin Analysis v1.0 - Fibonacci Correction to 0.5 or 0.618
Litecoin on the 4hr timeframe appears to be trying to move above the 20MA + 50MA after falling below them a day ago.
The volume is not picking up on Litecoin and it appears buyers are afraid to get in around this area. This suggests that Litecoin is going through some consolidation after yesterday's drop, which also indicates that this is possibly a continuation pattern and the price will fall lower after some time. I drew a Fib-Retracement to show the levels that Litecoin may find some support around, but essentially a corrective move towards the 0.5 level would be the most likely as redMA would be near this level around the same time. Unless price is able to push and close above the Purple+Green MA soon and with high volume, another drop lower would be the most likely scenario.
Short Term Statistics (Few Days):
- Price Moves to $53 (50% Chance)
- Price Moves to $51 (30% Chance)
- Price Moves Higher (20% Chance)
Levels to watch:
- $55 (Mini-Support Zone, Risky)
- $53 (Area of 0.5 Fib + RedMA)
- $51 (Area of 0.618 Fib)
Notes:
- Daily Stoch-RSI indicates that there could be further downwards price action
The volume is not picking up on Litecoin and it appears buyers are afraid to get in around this area. This suggests that Litecoin is going through some consolidation after yesterday's drop, which also indicates that this is possibly a continuation pattern and the price will fall lower after some time. I drew a Fib-Retracement to show the levels that Litecoin may find some support around, but essentially a corrective move towards the 0.5 level would be the most likely as redMA would be near this level around the same time. Unless price is able to push and close above the Purple+Green MA soon and with high volume, another drop lower would be the most likely scenario.
Short Term Statistics (Few Days):
- Price Moves to $53 (50% Chance)
- Price Moves to $51 (30% Chance)
- Price Moves Higher (20% Chance)
Levels to watch:
- $55 (Mini-Support Zone, Risky)
- $53 (Area of 0.5 Fib + RedMA)
- $51 (Area of 0.618 Fib)
Notes:
- Daily Stoch-RSI indicates that there could be further downwards price action