HIGHLIGHTS Litecoin's (LTC) price bounced inside the channel around $48 and made a short squeeze, liquidating all short-sellers. A retracement needs to take place. Zone for retracement will be $32.5 price range.
IN DETAILS... Fundamentally, the last 3 days Litecoin made a short squeeze, pumping it's price more than 25% for a short period of time. A short squeeze is an event where the price starts to rise rapidly and short-sellers are forced to liquidate and cover their position by purchasing the stock. On 15 Oct 2018 BTC made a short squeeze of the same type, 30 days after that a whole market dropped more than 45% for a short period of time. Before a big drop market is clearing the short sellers with market manipulation. Usually, after the event as this market make drastic drops cause most of the short-sellers are liquidated.
Technically, Litecoin's (LTC) price bounced on the line inside the channel around $48. The relative strength index (RSI) indicates the magnitude of recent price changes to evaluate overbought or oversold conditions of the asset. Litecoin was in an oversold condition that gave the technical right for a price reaction. Currently, the relative strength index (RSI) is in an overbought condition that most likely brings the price on the lower level. The trend has formed a channel and till now has respect for its resistances and supports. The price tested 200 candles - exponential moving average (EMA) around $60 and get rejected. Retracement will take place next strong support zone will be around $32.
CONCLUSION Litecoin's (LTC) price is in an overbought condition and retracement needs to take place. The trend tested 200 candles - exponential moving average (EMA) around $60 and get rejected. Drop to $32 is highly likely to take place.
Awareness keeps the fear away
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Weekly Chart
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#LTCUSD Short (Channel resistance) The same pattern, the same short squeeze
@Kairos-Alpha, I sold at 58$ and am waiting for a trend change, was seeing 32$ as a target months ago and when I saw your post on trading view also saying 32$ it gave me the courage to sell. So many people were telling me it was gonna go up ... Thanks for the post.
Sierra-117
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any update on this idea?
Kairos-Alpha
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@7c6fcedd3e8c1b6e7f52391ed9aaa4, Patience
Sierra-117
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@Kairos-Alpha, people are buying out of FOMO which is keeping the price at this level
finsIe
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Thanks for sharing, however I think that daily trend line already broke and is no invalid! I am looking for up now.