Litecoin rise over the past few days hasn’t been of much intensity, hitting a high of 12.1. What we’re experiencing right now is a classic exercise.
During my last technical analysis on Litecoin on the 3rd of April, I explained how LTC/USD was trading at a massive support zone at the 78.6% Fib level on the Weekly chart, as can be seen below:
“So, observing the Weekly chart above (click to expand), we can see how price fell down to and tested the 78.6% Fib level (circled in blue). Indeed, it’s actually been tested before, in late February this year, so this makes it an even more vital zone that needs to be paid attention to. Unsurprisingly, there was a bounce off this level.”
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Then I performed a shorter timeframe study on the H4 chart, commenting I expected price to reach the 38.2% Fib level soon, which duly occurred, in fact it rose even further to the 50% level at 12.05, as can be seen below:
But let us observe and zoom into the LTC/USD chart in more detail, on the thirty minute timeframe:
I’ve performed the Fibonacci study from the low of the month at 10.2 until the current high. We can see how price has tested 38.2% on two occasions so far. I suspect that price will probably rise to the 23.6% level in the immediate few candles, since we have the AC just turning green, along with the Stochastics approaching oversold territory.