The Legendary Analysis Continues — Litecoin! (LTC) =D

Hi friends! Welcome to this analysis on Litecoin! =D Let's jump right in. Looking at the four hour LTC chart, you can see that it had a breakout above the downtrend channel (grey dashes,) and rallied up to pierce the 38.2% retracement level, of $266.50. After that, the sellers came in and slammed LTC back down below the 50 EMA (in orange,) all the way to the top of the downtrend channel, which corresponds with the 200 EMA (in purple.) It appears to be finding some quick support there. However, the MACD is trying to form a bearish crossover, but it hasn't done so yet. On the bullish side, we can see that there is a possibility of a newly created uptrend channel (blue trendlines.) For the bulls to maintain a recovery of LTC, we need to see this uptrend channel hold. If you look at where price is right now, you can see that there is a convergence of support underneath it. You have the 200 EMA, the 50% retracement level, the top of the downtrend channel, and the bottom of the uptrend channel. When support levels converge like this, it increases the likelihood that the level will hold. However, a breakdown below a convergence of support levels is never good for the bulls, so we need to watch it closely. Seeing a move where LTC stays inside of the uptrend channel, and gets back above the 50 EMA would be a strong sign for the bulls. A breakdown here, would be a big win for the bears, because it would take out several key support levels at once. So where do we go from here? On the upside, look for a break above the 50 EMA, and then a test of the bottom of the dashed pink trendline, before possibly heading higher into the channel. On the downside, look for a breakdown through the four aforementioned support levels, which could quickly send LTC down to $220, and then $200.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, like, comment, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-JD-

Comment:

Update: LItecoin is still holding the bottom of the rising parallel channel (in blue.)