Litecoin Hit My $50 Target, But Could Be Geared To Rally! >=D
Hi friends! Welcome to this update analysis on Litecoin! Let's get right to it!
As I'm sure many of you know, LTC broke into the $50 range recently (actually trading below $50 at one point) causing the crypto to reach my multi-month target of $50! =D
Looking at the daily chart, there are several key things to point out. First, I would like to draw your attention to the rising black trendline. This trendline originates on March 30th of 2017 (at the beginning of the rally to the all time high) and it ties in with a low produced on September 17th. That trendline, in my opinion, was a very important level to hold, because it represented the lowest rising pre all-time-high support level. As you can see, when LTC got down to it, it tested that level all through June and July. Then, it failed to hold and just plummeted to the $50 range. So, that was a sign of undeniable technical weakness, which showed that the bulls were basically nonexistent, at a very critical support level.
Looking at the chart overall, you can see that there are two major support and resistance zones. Currently, LTC is stabilizing near the top of the support zone, but it's struggling to get above the 20 EMA (in blue.) With that said, I do think there is a decent probability of a bounce here, especially if we get above the 20 EMA, which could potentially take LTC up to the $70 level. LTC has been badly beaten lately, and it is showing sustained support on the top of a huge support zone.
If you look at the falling wedge (in maroon dashes) you can see that LTC formed a hammer off of it's bottom trendline on August 14th. Since then, we've just been drifting sideways while testing it as support. So, that tells me that LTC may be gearing up for a rally here. With that said, we can't lose sight of the fact that this is an undeniably strong bear market. So, I would rather remain a seller of rallies than a buyer of dips, until I see some major changes. Particularly, I'm interested to see what happens with the falling wedge pattern. Falling wedges are bullish reversal patterns, and there is a massive falling wedge on this chart. When you couple that with the huge bullish divergence that has been building on the MACD, there is a technical reason to think that a powerful reversal of the bear market could soon occur. But that will all depend on how price responds to the falling wedge. I can tell you without a doubt, if LTC falls below the falling wedge and below the ATH support zone, you can kiss this market goodbye. Right now, it's do or die for LTC.
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.***
As I'm sure many of you know, LTC broke into the $50 range recently (actually trading below $50 at one point) causing the crypto to reach my multi-month target of $50! =D
Looking at the daily chart, there are several key things to point out. First, I would like to draw your attention to the rising black trendline. This trendline originates on March 30th of 2017 (at the beginning of the rally to the all time high) and it ties in with a low produced on September 17th. That trendline, in my opinion, was a very important level to hold, because it represented the lowest rising pre all-time-high support level. As you can see, when LTC got down to it, it tested that level all through June and July. Then, it failed to hold and just plummeted to the $50 range. So, that was a sign of undeniable technical weakness, which showed that the bulls were basically nonexistent, at a very critical support level.
Looking at the chart overall, you can see that there are two major support and resistance zones. Currently, LTC is stabilizing near the top of the support zone, but it's struggling to get above the 20 EMA (in blue.) With that said, I do think there is a decent probability of a bounce here, especially if we get above the 20 EMA, which could potentially take LTC up to the $70 level. LTC has been badly beaten lately, and it is showing sustained support on the top of a huge support zone.
If you look at the falling wedge (in maroon dashes) you can see that LTC formed a hammer off of it's bottom trendline on August 14th. Since then, we've just been drifting sideways while testing it as support. So, that tells me that LTC may be gearing up for a rally here. With that said, we can't lose sight of the fact that this is an undeniably strong bear market. So, I would rather remain a seller of rallies than a buyer of dips, until I see some major changes. Particularly, I'm interested to see what happens with the falling wedge pattern. Falling wedges are bullish reversal patterns, and there is a massive falling wedge on this chart. When you couple that with the huge bullish divergence that has been building on the MACD, there is a technical reason to think that a powerful reversal of the bear market could soon occur. But that will all depend on how price responds to the falling wedge. I can tell you without a doubt, if LTC falls below the falling wedge and below the ATH support zone, you can kiss this market goodbye. Right now, it's do or die for LTC.
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.***