Cryptocurrencies

LTC technical analysis

LTC seen from the temporality of 1W we can see how the candle structures have formed a descending wedge where the price has been contracting in each LL formed during the movement, the previous candle has closed above the consolidation after having left a long lower wick that reached the second zone of demand located within the price range of 43.55 – 47.01, indicated in the chart above by the two red horizontal, this is a sign of strong buying pressure, however, the closing of the candle has been within the figure and below the horizontal located at 62.22, indicated in the chart above by the green horizontal, so it is possible that the price still has some further retreat before getting the break.

LTC seen from the temporality of 1D we can observe more closely the current movement of candles where we see a triple test of the resistance of the major figure, this should push the price towards the zone of demand in 1D located within the price range of 52.45 – 55.60, indicated in the chart above by the light blue rectangle, if the support located in that area can not hold the price, this reversal could extend into the second zone of demand located between the 2 horizontal red.

In conclusion, the price remains within the major figure and this is being rejected in that area, we should see the price go back to the 1D demand zone mentioned above, if the price does not take a strong impulse in that area, we will see a retreat into the range of 47 – 43.55, BTC is also making a retreat, so this should support the movement of LTC, once the price achieves the break of the falling wedge we will have good profit margins, our first objective is located within the price range of 72.60 – 81.17 and the second target is located within the price range of 99.90 – 106, for now it is necessary to wait for the price to go back and find a new point of support for a new attempt to break the resistance and go in search of our objectives, therefore, I recommend to be very attentive to the action of the price in 1D, always remember to place your stop loss to avoid possible invalidations during the movement.

As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.

You can follow me on Twitter: https://twitter.com/armijogarcia

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