HI friends! Welcome to this update analysis on Litecoin! Let's get right to it! Looking at the daily LTC chart, we can see that Litecoin has completed a head and shoulders pattern, but has not broken down below the neckline (in pink.) Yesterday's candle was somewhat of a hammer, while today's candle is currently a hammer as well. So, we are currently seeing sustained support on the neckline of the head and shoulders pattern. If support continues to hold here, we are likely to see another attempt to rally above the 50 EMA (in orange.) You can see that the 50 EMA capped of the rally of the left shoulder, the action leading into the head, and then everything between the top of the head and the right shoulder. So, the 50 continues to be extremely resistive, as it has been throughout the majority of the bear market. With that in mind, the technical bias is to the downside. We are in a downtrend channel, just had an inverted head and shoulders that failed to produce a substantial rally, and instead morphed into an upright head and shoulders pattern, and we've had continuous resistance at the 50 EMA. So, my opinion is that until we see a breakout above the downtrend channel, it's probably best to wait for lower prices before adding to longs. At the moment, I am most interested in seeing how the market reacts to a test of double bottom. So, for me personally, I will buy a hold of double bottom, or a breakout above the blue downtrend channel.
Be smart. Be nimble. Good luck trading 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.***