As you can see in my chart litecoin recently formed an huge and meaningful downward-direction-channel with its low at 39.5, in recent mechanisms the price just broke out this downward-direction-channel with some good and solid to the upside. As it made a new high in the structure at 47.9 it experienced a pull-back now, at the moment it is within the likelihood spectrum that this pull-back will continue to the downside as soon as we get some fundamental support to stabilize in the structure, the next important support will be the lower boundary of the downward-direction-channel and the coherently confirming 300-EMA which you can see marked in blue.
When we reach these levels and confirm them as support there is a good chance given that litecoin sets up to form some legs to the upside, be sure that the needed support-levels confirm properly otherwise when we fall below the 300-EMA and into the downward-direction-channel, this will add a shape to the structure and more downside is possible. But when we confirm it rightly as support the targets you can see are activated and the middle-term-target is reached when we dont get any significant pressure on the way which will alter the dynamic, the whole long-term-target of the downward-direction-channel is even higher so it will be interesting to see how litecoin reacts in the upcoming resistance.
Overall we can expect that litecoin is one of the decent coins at the moment but although with good upside potential especially if we take out important resistance-levels. The whole cryptocurrency market is sending mixed signals for now and we need to elevate where the journey is heading, also I discovered that the equality between the coins gets a higher spread this can lead to a dynamic which will change the market in fundamental ways as some coins loosing public demand and others get a boost of new fresh liquidity similar to the stock-market where there are big differences in stocks, traders and investors should be prepared for this and dont fall for the illogical approach to trade just anything and overconjecture the situation seen too often these days.
In this manner, thanks for watching, support for more market insight, also you can follow my social networks which you see in the signature for more in-depth, appreciate my friends! ;)
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Information provided is only educational and should not be used to take action in the markets.
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