Roughly 24 hours ago I did an analysis on litecoin discusses the upside and downside scenarios out there. Price had been consolidating for a while and a move was bound to happen in the near future – it didn’t take long!
Battle at Support
I mentioned in the downside 108 was a key level (give or tack a point) as it is evident when looking at both the weekly and the daily chart. Much history at this level of reversals both up and down.
We saw the level come into play earlier today after price puked to 102. Here is a chart of the hourly price action from the afternoon. When it finally bounced look where it struggled and then ran out of gas.
Yep right around 108! Price ended pushing back up against the level and the daily candle closed right up in the mix of it so really the answer of weather support was broken or not is debatable.
However, looking at the weekly chart, where this price support is vital shows that price is already pushing lower again…..
What is crazy is that when you look at weekly candles your “intra-week” highs and lows give you quite the spread. You can see that 102 and even 98 are intra-week lows that if held is fine if we end the week above 108. Atleast that is my opinion for LTC to remain bullish.
I’d rather buy 102 and 98 if I get the chance, knowing my downside exit is near, which is why the coin I got at 110 from an open order I forgot I had (doh!) I quickly closed out at 107 for a tiny loss as I want that capital available for purchases at the lower price points if they become available.
Either way, it will be interesting to see how LTC reacts in regard to BTC, which sparked the market sell-off and on the weekly chart has me skeptical about going higher before pulling back a bit more over the next week or so.