What's up traders,
Here we have LTC/USD on the 1H chart.
LTC/USD appears to be supporting at a local horizontal support zone at 175.30. Price has recently been trading within a rangebound structure between a horizontal resistance at 193.10 and a horizontal support at 164.20.
Price is picking up momentum to the upside. Price had an initial low of 164 on the 26th of January January, and since then there has been higher lows in the pair. It looks like the entire Cryptocurrency market as a whole has bullish potential after having a lot of downside days.
I am expecting Litecoin to continue with it's current momentum, and hit the horizontal resistance level which is the target zone, at 193.80.
This trade could play out in 2 ways, I have outlined these below:
-Price finds support at current levels at 178, bounces, and then licks up bullish momentum and hits the horizontal target zone at 193.80.
-Price tests the current horizontal support level and fails, and breaks down further to the lower support zone at 164.80. Once we bounce, price will then begin its upside move to the upper horizontal target zone at 193.80
Bare in mind, the first scenario is preferred to the second. If price manages to break down to the lower support zone it will be much less likely that the upper target of 193.80 will be hit due to the fact there would need to be significant bullish participation in the pair in order to have the buy opportunity.
A test of the lower support however, does show that a significant amount of bears will have been wiped out of the market, this could be good for Litecoin in the long run. I can say this with logic and confidence, because it is already clear the Cryptocurrency market as a whole is significantly improving. So with the bears being wiped out at an old structure level this would mean that the bulls would be free to rally the pair with a fair amount of ease.
I will updating this analysis if it receives enough attention.
Here we have LTC/USD on the 1H chart.
LTC/USD appears to be supporting at a local horizontal support zone at 175.30. Price has recently been trading within a rangebound structure between a horizontal resistance at 193.10 and a horizontal support at 164.20.
Price is picking up momentum to the upside. Price had an initial low of 164 on the 26th of January January, and since then there has been higher lows in the pair. It looks like the entire Cryptocurrency market as a whole has bullish potential after having a lot of downside days.
I am expecting Litecoin to continue with it's current momentum, and hit the horizontal resistance level which is the target zone, at 193.80.
This trade could play out in 2 ways, I have outlined these below:
-Price finds support at current levels at 178, bounces, and then licks up bullish momentum and hits the horizontal target zone at 193.80.
-Price tests the current horizontal support level and fails, and breaks down further to the lower support zone at 164.80. Once we bounce, price will then begin its upside move to the upper horizontal target zone at 193.80
Bare in mind, the first scenario is preferred to the second. If price manages to break down to the lower support zone it will be much less likely that the upper target of 193.80 will be hit due to the fact there would need to be significant bullish participation in the pair in order to have the buy opportunity.
A test of the lower support however, does show that a significant amount of bears will have been wiped out of the market, this could be good for Litecoin in the long run. I can say this with logic and confidence, because it is already clear the Cryptocurrency market as a whole is significantly improving. So with the bears being wiped out at an old structure level this would mean that the bulls would be free to rally the pair with a fair amount of ease.
I will updating this analysis if it receives enough attention.
