Litecoin price remained between $1.84 and $1.86 throughout yesterday’s trading sessions. Following Friday’s bullish rally, litecoin price wasn’t able to breach the resistance level at $1.86 which coincides with the 50% Fibonacci retracement level.
By examining the 4 hour Bitfinex (LTC/USD) charts from tradingview.com, plotting the moving averages of the William’s Alligator indicator and drawing the Fibonacci retracements across a trend line that extends between the low recorded on the 10th of February ($1.67) and the high reached on the 15th of February (look at the below chart), we can notice the following:
- After Friday’s rise in litecoin price, the market attempted price correction and pulled the price down to $1.84 which is the current price at the time of writing of this article. Accordingly, after this 50% price correction wave is complete, it is likely to see litecoin price continue rising.
- Since the 13th of February, the moving averages of William’s Alligator indicator showed a bullish alignment on 3 occasions that were followed by bullish waves. Right now, we can see the alligator opening its mouth with the lips (blue line) on the bottom, the teeth (red line) in the middle and the jaws (green line) on top of both so we can see litecoin price rise up to test the 38% Fibonacci retracement level at $1.9 soon.
By studying the 1 day Bitfinex (LTC/USD) charts from tradingview.com, plotting the 20, 50 and 100 day EMA and executing the MACD indicator and Vortex Indicator (VI) (look at the below chart), we can notice the following:
- Litecoin price is below the 20, 50 and 100 day EMAs which reflects the general current bearish trend of the market.
- The MACD line and the red signal line have just converged and the MACD’s value is about to enter the positive territory. If we see the MACD blue line cross over the red signal line (which seems to be imminent), we can see another bullish wave within the next 48 hours.
- The VI is in favor of an upcoming bullish rise as the blue uptrend line has crossed above the red downtrend line.
Conclusion:
Litecoin price stabilized around $1.84 after Friday’s bullish rally. Our technical analysis is in favor of an upcoming bullish wave that can take the price up to $1.9 within the next 48 hours.
Charts from bitfinex
