The price of Litecoin has been struggling to continue its upward trajectory with the attempt to break the minor resistance level ending as a failure on today’s open. The price is now expected to go lower as we are likely to see the sellers taking control.
- Interaction with the $122.32 level would be expected.
- This expected downside move is considered as the third wave from the correctional structure which started on the 12th of June.
- If the support is present at around $122 area it could indicate that another increase would occur, but if the price enters the lower range it could indicate the starting downturn.
Read: Trade with Pepperstone
Litecoin Price Analysis LTC/USD
From today’s open at $137.817 the price of Litecoin has decreased by 3.78% measured to its lowest point at $132.613 around which it is currently being traded.
Yesterday we’ve seen an increase of 4.95% as the buyers attempted a make a recovery but the sellers have applied pressure around the vicinity of the prior high at $137 which proved to be stronger than the momentum caught and cause the price to start moving to the downside again.
As the bullish momentum hasn’t been strong enough to push the price above the minor resistance level it indicated that the sellers might take control now causing the price to start another downfall below its current minor horizontal support level.
As we’ve seen a three-wave move after a descending triangle correction this move to the downside could be the third wave out of the higher degree three-wave correction after the previous five-wave impulse ended.
If this is true, after another downfall below $126.5 which is the descending triangles ending point and potentially to the horizontal level at $122.32, we are to see another increase as another impulsive move would start.
However, we could have seen the ending wave out of the higher degree count with the price action experiencing a sideways consolidation after a downturn. In either way, from here I would be expecting further downside movement to the intersection of the ascending trendline and the significant horizontal level at $122.32.
If the area serves as a support and the price starts impulsively moving to the upside again another starting uptrend would be likely, but if we see a breakout inside the territory of the lower range below $122 further downside movement could be seen as it could indicate that starting downtrend.