Litecoin, Pullback Ocurred, These Steps Determine Continuations!
Hello Traders Investors And Community,
Welcome to this update-analysis where we are looking at LITECOIN 12-hour timeframe perspective, the recent events, the current formational structure, what we can expect the next times, and how to possibly handle upcoming situations in the appropriate manner. As mentioned in previous analysis Litecoin had this strong resistance cluster still remaining above in the structure, exactly this resistance now confirmed and Litecoin pulled firstly back from there, the big question is now if Litecoin shows up with further pressure or it certainly manages to hold this levels and form a possible continuation from here, therefore I detected all the important levels and likely outcomes we should consider within this structure, as Litecoin is forming a very differential structure here it will be interesting how it moves further.
Looking at my chart you can watch Litecoin currently still holding above this 100-EMA marked in green where Litecoin has also this dashed grey trendline as support which are the reference points for bullishness in this structure. Overall it is building this triangular range between the upper resistance and the lower support here as it is marked in my chart, such structures have in common that they can break to the downside swiftly when the strength decreases while strength shows up, this is why such formations can show up a heavy breakdown to the side when the shot below the holding support levels, which will be in this case when Litecoin moves below the and dashed trendline lying there as many stop-losses will be below it this will show up with continued pressure to the downside ahead.
Currently, there are basically two possible scenarios to happen of which one shows up when Litecoin somewhat manages to hold this weak support and gains strength to approve a test of the upper boundary and a breakout above this, as the weakness already certainly increased this is not the most likely outcome at the moment, on the other side will be the continuation to the downside which will show up when Litecoin crosses below the support lying there as already mentioned this will increase till there is substantial support found which can reverse the situation, in this case, it will be the lower demand-zone marked in my chart in blue where Litecoin can form a back-up and at the end of the day, a reversal possibly approving the breakout above the upper descending resistance line in blue where a continuation can follow.
In this manner, thank you for watching, good day my friends, and support for more market insight.
“If you have the conditions you get the results.”
Information provided is only educational and should not be used to take action in the market.