As we know, Litecoin’s value has halved in the space of a fortnight, dropping like a rock from 21.1 to 10.2, but if we remember our analysis from last week, we actually have a very strong support at around 10.2, as can be seen below:
I mentioned, “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.”
Now, zooming into today’s Daily chart on LTC/USD…
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I’ve performed the Fibonacci study from the last major swing high at 17, until the month’s low at 10.2.
As we can see, the Stochastics have been in an oversold position for a long time now, since late March, but it’s only until now that they’ve managed to cross upwards. In addition, we have both Bill Williams’ Oscillators, the Awesome and the Accelerator having turned green.
Price has already tested the 23.6% Fibonacci retracement level a couple of days ago, and with the current technicals the way they are, I feel it won’t be long before we see another.