There was some hope for Litecoin to break above 12.0 this morning, but that has not turned out to be the case for the time being. Ultimately, it tested this point, but so far has proved to be a firm psychological resistance.
This was the LTC/USD chart I had posted yesterday evening:
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“Since the testing of 78.6% however, we’ve seen some consolidation, with all four following candles forming spinning tops – classic ranging in action… Whether this means we’re going to see bulls take over is hard to say, but at the very least, I’m confident of price testing 61.8% at 12.0.”
So, fast forward to today’s LTC/USD chart (below), we can see price did indeed manage to test 61.8% at 12.0, although it’s been flatly rejected from going any further. What’s more is that we now have the Accelerator and Awesome Oscillators turning red, with the Stochastics beginning to flatten out.
It could well be the market is gearing for a break below the 78.6% Fib, in which case we could see a testing of the low at 11.4 this week – however, I actually suspect we’ll see some more ranging for the meantime between these two levels of 61.8% and 78.6%.