Litecoin further increase needs confirmation February 27, 2018
Litecoin moves somehow sideways on the short term and looks undecided on the Daily chart. Technically, it was somehow expected to increase again and to recover much more after the impressive sell-off, but the crypto has found a temporary resistance.
Price could move sideways in the upcoming days, but I really hope that we’ll have a great trading opportunity soon because the rate cannot move in range too long.
It remains to see if this will be an accumulation or a distribution movement, so we’ll have to stay away from this crypto because we don’t have any trading opportunity.
Litecoin was in a corrective phase since December 19, but it has found a bottom above the 100 psychological level and now is fighting hard to recover after the impressive sell-off.
The crypto market has crashed on the regulation talk and because there are many rumors that the cryptocurrencies are a fraud.
Technically, the corrective phase was expected and it was natural after the impressive rally, maybe not so deep, but the investors have panicked and have tried to get out with a small loss.
Personally, I believe that the most important crypto should reach at least the historical highs till the end of the year.
I’ve noticed that the crypto are somehow correlated, Litecoin could increase as well if the Bitcoin and Ether will jump towards fresh new highs.
You can see that the rate was into a Falling Wedge pattern on the daily chart, the rebound was expected after the last two false breakdowns below the downside line of the chart pattern.
Litecoin was too oversold and was expected to increase again after the failure to close on the downside line of the Falling Wedge.
The rate has broken above the downtrend line, signaling that we may have a reversal on the Daily chart again.
Price has found temporary resistance above the upside 50% Fibonacci line (ascending dotted line between the ml and the uml) of the ascending pitchfork, it has retested this line failing to close on it or near it signaling a minor drop.
Litecoin has come back down and to retest the broken downtrend line, but failed to reach this dynamic support (resistance has turned into support) signaling that it could jump higher again.
You can see that it has found strong support (demand) on the 50% Fibonacci line between the median line (ml) and the lower median line (lml), but unfortunately has made a false breakout above the median line (ml) of the ascending pitchfork.
It is premature to talk about a larger increase at this moment as long as the rate is located under the median line (ml), only a valid breakout above this dynamic resistance will confirm a further increase.
However, a further drop will be confirmed after a valid breakdown below the downside 50% Fibonacci line, the next downside target will be at the lower median line (lml) of the ascending pitchfork.
Litecoin maintains a bullish perspective on the short term as long as is trading within the ascending pitchfork’s body, will move towards the upper median line (uml) if will have enough directional energy to close above the median line (ml) and to retest it.
You should know that Litecoin will drop towards the 104.82 former low if will escape from the ascending pitchfork’s body.