Litecoin Continues to Test Major Support — Awaiting BTC Lead!
Hi friends! Welcome to this update analysis on Litecoin! Let's get right to it. Looking at the daily chart, you can see that LTC continues to remain inside of the falling wedge pattern (black dashes.) Unlike the triangle on the BTC chart, this IS a falling wedge. You can see how the bottom trendline has a nice slope to the downside, which defines this pattern as a falling wedge. Yes, falling wedges are bullish — but that doesn't mean we will see a breakout to the upside. As we all know, LTC is highly dependent on the action of BTC, much like the rest of the market. So, if BTC has a nasty breakdown from its descending triangle, I would expect this LTC wedge to fail as well.
With that said, you can see that price continues to test the top of the "pre all time high support zone." LTC has been testing it a lot, and so far, it has remained supportive. However, even if we do catch a bid higher, the top of the wedge is just above, which is converging with the 50 EMA (in orange.) So, there is still a decent amount of overhead resistance just above the current price range. Personally, I'm looking for this market to continue it's breakdown. If we see a confirmed breakout above the falling wedge, on high volume, I wouldn't even buy into that. I have no interest in going long in this market, unless I see some MAJOR changes. For example, I would have to see LTC confirming above the heavy resistance zone, to even think about going long. This market is just way too dangerous for bullish trades right now. I would much rather remain a seller of rallies. I'll leave the knife catching to everyone else.
Regardless, if we see LTC start to encroach into the pre all time high support zone, that could be the beginning stages of the support failing. You can see that on the 12th, LTC pierced into the support zone, but closed above it. If LTC loses the bottom of that support zone, there are stair step supports below that, so I could see a continuous gradual decline in LTC. Until then, we may just trend sideways for the next few days. Sometime within the next 10 days or so, we should see a break either above the falling wedge or below the top of the support zone.
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.***
With that said, you can see that price continues to test the top of the "pre all time high support zone." LTC has been testing it a lot, and so far, it has remained supportive. However, even if we do catch a bid higher, the top of the wedge is just above, which is converging with the 50 EMA (in orange.) So, there is still a decent amount of overhead resistance just above the current price range. Personally, I'm looking for this market to continue it's breakdown. If we see a confirmed breakout above the falling wedge, on high volume, I wouldn't even buy into that. I have no interest in going long in this market, unless I see some MAJOR changes. For example, I would have to see LTC confirming above the heavy resistance zone, to even think about going long. This market is just way too dangerous for bullish trades right now. I would much rather remain a seller of rallies. I'll leave the knife catching to everyone else.
Regardless, if we see LTC start to encroach into the pre all time high support zone, that could be the beginning stages of the support failing. You can see that on the 12th, LTC pierced into the support zone, but closed above it. If LTC loses the bottom of that support zone, there are stair step supports below that, so I could see a continuous gradual decline in LTC. Until then, we may just trend sideways for the next few days. Sometime within the next 10 days or so, we should see a break either above the falling wedge or below the top of the support zone.
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.***