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Litecoin Manages To Stay Above $ 50
Litecoin has made a bullish breakout of the long-term downtrend resistance line.
Support is located at $ 47.5 and $ 41.5.
LTC / BTC rate cannot break above ₿0.0057.
Litecoin has made a bullish breakout of the long-term resistance line, turning it into support. However, it is not yet clear if LTC can continue to grow..
However, as long as trading is held above the two support levels indicated by us below, the pair’s chances of further strengthening remain high.
Long-term bullish breakout
In early July, the Litecoin (LTC) rate made a bullish breakout of the downward resistance line, which lasted 889 days on the chart. As a result of this week’s decline, price has tested this line for strength as support, which is widespread after bullish breakouts..
Technical indicators are neutral, with a slight advantage towards bears. RSI gave signals of hidden bearish divergence before the current drawdown, while the stochastic RSI is overbought and began to decline.
However, the pair is not giving any clear signals of a bearish reversal..
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There are two support levels on the daily chart – at $ 47 and $ 40. At the time of writing the analysis, the price was trading directly in the area of the first level.
Technical indicators on the daily chart paint a picture that is the opposite of what we see on the weekly timeframe. Both the RSI and MACD are at their lowest levels since the March collapse, while the stochastic RSI is oversold and holds at June levels, which preceded a phase of active growth.
In this regard, as long as the price is trading above any of the support levels we have identified, its chances of further growth will remain high..
After the pair formed a minimum on March 13, the results of the wave analysis do not give us clear signals. It is possible that the price has already completed the formation of a five-wave structure (black in the chart below) and is now correcting. Given the length of the previous bullish move, the correction could take several weeks.
An unusual point in this structure is the wavelength 1-2 in comparison with waves 3-4-5, as well as the fact that the maximum trading volumes fell on the presumptive wave 5, which does not happen often.
Another likely scenario is the formation of a wave pattern known as 1-2 / 1-2. In this case, after the formation of waves 1-2 (black), the 3rd wave turned out to be expanded and again consisting of waves 1-2 (orange).
This scenario will be neutralized in case of absorption of the low of the second wave of July 27 at $ 39.1.
Litecoin / Bitcoin
Cryptocurrency trader @filbfilb shared an LTC / BTC chart on Twitter showing the pair is trading near its historic lows.
The pair has indeed lost key support at ₿0.0057, which is now playing the role of resistance. Until LTC bulls manage to recover above this level, it will be impossible to talk about bullish price dynamics..
If the pair succeeds in this, the current decline can be considered as a price deviation beyond the lower boundary of the range.
Technical indicators are giving relatively bullish signals. RSI signals bullish divergence and stochastic RSI has formed a bullish crossover.
MACD is growing, and although it is now forming a falling bar, there are still three days left before the close of the week.
Recovery above ₿0.0057 will target the market at рынок0.008.
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