Up channel and EMAs
Like every top altcoin the litecoin also has formed an . And sometimes it is moving above the exponential moving averagea 10 and 21 and sometime it was moving sideways with these EMAs. At this time the price action has almost broken down the 10 and 21 and likely to have a bounce from the support of the channel:
The different moves within the channel:
Price action of Litecoin is forming the different moves with the continuation within this . And every time when it enters in the potential reversal zone of any pattern it takes powerful successfully. First of all the price action formed a move then it formed pattern. After the successful formation of it completed the formation of and now it has completed the formation of another BATT pattern and entered in the potential zone of this BAT. This PRZ level or buying zone starts from $43.51 up to $. 67. From here LTC can again take the powerful . However we should set the maximum extent of this potential reversal zone as our stop loss. Because if this PRZ level will be broken down then the price action may move more down to form a .
Simple moving averages on daily chart:
On the the 50 has formed a bull cross with the 100 . But the price action is still moving down and at this time it is having the support of 100 . If the 50 will form the golden cross with 200 then the price action can move more up restart an another rally. Because golden cross between 50 and 200 SMAs is considered as a very strong buying signal among the trader's community.
Simple moving averages on weekly chart:
If we watch the simple moving averages with the time period of 50 and 100 on the long term weekly chart then it can be clearly seen that when back in 2016 the 50 crossed up the 100 then it leaded the price action to turn very strong parabolic that produced more than 12000% rally. This time again second time in the history of LTC the 50 again formed a bull cross with 100 on 3rd Feb 2020. But there was a big difference between the previous bull cross and current bull cross, because the previous bull cross of 50 and 100 SMAs was formed below the and that is very strong signal but on the other hand the current bull cross between 50 and 100 SMAs was formed above the price action. Therefore even though this golden cross pulled the price action up but at the same time it was working as a resistance for the priceline. And the price action could not breakout this of the moving averages and moved down.
Simple moving averages on monthly chart:
For any big move I am looking at simple moving averages of monthly chart. Below you can notice I have placed two simple moving averages with the time period of 7 and second is with the time period of 50. The 7 is very significant and has very importance role to produce any big move.
On the below chart you can observe that back in Jan 2017 when the 7 crossed down the priceline the it produced more than 12000% move. Then again in March 2019 the 7 moving average crossed down then it produced more than 274% rally. Now at this time the 7 moving averages is very close to the even it is touching the upper wick of the and showing the tendency to move down again. this time the 7 MA is already in bear cross with 50 . Once the 7 will again cross down the price action and start lifting the priceline upward then it will also form a bull cross with 50 as well. And that will lead to a very powerful long term move.
The price action is already in the potential reversal zone of and has the good support of 100 . If the seven moving average on the monthly chart will provide a support to the price action then we can soon witness a very powerful move.