Litecoin Surges To The 50 EMA! Here's The 411! (LTC)
Hi friends! Welcome to this update analysis on Litecoin! Let's jump right in!
As you can see LTC has continued to surge toward the 50 EMA (in orange) as I have been anticipating. If you recall from my previous analysis, I said "I believe that a test of the 50 EMA is imminent. In other words, we could see a rapid rally up to the $35 area." Currently, we are at $33.50, and just below the 50 EMA.
So, a test of the 50 is almost a certainty now. I would be very surprised to see the market turn down, at this point, without testing the 50 EMA first. That is the REAL test that we need to see. The 50 EMA has been extremely resistive during the majority of the bear market. So, if we can get above it right now, that would be a very interesting technical development. Of course, we would then have to immediately deal with the top of the blue downtrend channel, but a hold above the 50 EMA could potentially lead to a breakout above the channel.
With all of that said, my short-term bias is to the upside, despite the fact that we are just under major historical resistance (the 50 EMA.) The reason why I still have an upside bias, is because we never tested the 47-49 area, to confirm it as resistance, after the original breakdown. Much like BTC and others, LTC just smashed straight through it, and never looked back. Typically for major support and resistance levels like that, the market tends to retrace to it, to confirm it as new support or "resistance" in this case. So, I wouldn't be surprised if we see LTC rally all the way up to the "Major Overhead Resistance Zone," to test it as actual resistance. Furthermore, the chart may be in the process of developing the head of an inverted head and shoulders pattern, but it's a bit too early to tell.
With all of that said, a strong reversal from the 50 EMA, on high volume, would be a short-term sell signal.
Happy Holidays Everyone!
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-
As you can see LTC has continued to surge toward the 50 EMA (in orange) as I have been anticipating. If you recall from my previous analysis, I said "I believe that a test of the 50 EMA is imminent. In other words, we could see a rapid rally up to the $35 area." Currently, we are at $33.50, and just below the 50 EMA.
So, a test of the 50 is almost a certainty now. I would be very surprised to see the market turn down, at this point, without testing the 50 EMA first. That is the REAL test that we need to see. The 50 EMA has been extremely resistive during the majority of the bear market. So, if we can get above it right now, that would be a very interesting technical development. Of course, we would then have to immediately deal with the top of the blue downtrend channel, but a hold above the 50 EMA could potentially lead to a breakout above the channel.
With all of that said, my short-term bias is to the upside, despite the fact that we are just under major historical resistance (the 50 EMA.) The reason why I still have an upside bias, is because we never tested the 47-49 area, to confirm it as resistance, after the original breakdown. Much like BTC and others, LTC just smashed straight through it, and never looked back. Typically for major support and resistance levels like that, the market tends to retrace to it, to confirm it as new support or "resistance" in this case. So, I wouldn't be surprised if we see LTC rally all the way up to the "Major Overhead Resistance Zone," to test it as actual resistance. Furthermore, the chart may be in the process of developing the head of an inverted head and shoulders pattern, but it's a bit too early to tell.
With all of that said, a strong reversal from the 50 EMA, on high volume, would be a short-term sell signal.
Happy Holidays Everyone!
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-
Comment:
As a clarification, I say that a reversal from the 50 EMA would be a SHORT-TERM sell signal. I want to emphasize VERY SHORT-TERM, because we could see a rejection at the 50 EMA, and a return higher, forming right shoulder in an inverted head and shoulders pattern.