Litecoin (LTC) testing $100 again
After support was found around the $78 value area, Litecoin is now testing a return to the $100 value area. A move beyond 100 would require a number of near term resistance levels to be broken.
Litecoin (LTC) returns to the $100 area
As the broader cryptocurrency market is showing signs of recovery – and possibly a new bull phase, Litecoin is again testing the key $100 value area. The 6/8th inner harmonic is at 98.81. This is a natural and powerful pivot where we often see prices rejected from moving through it. It was first tested as support back on July 10th, 2019. The 6/8th harmonic pivot held as a support zone until prices eventually dropped below on July 13th, 2019. Litecoin then shaved almost 25% of its value by dropping down to the 75.70 value area before finding support. What is interesting about that down move was that price moved below the 4/8th inner harmonic at 85.13 without really any support or resistance. Litecoin has since ranged between 98.81 and 85.13 for the last half of the month.
Litecoin reached a new 2019 high of 146 on June 22nd, 2019 before experiencing the most recent corrective wave lower. Consequently, the high of 146 is also a 13-month high. A move lower from the present value area seems less likely and a successful test beyond the $100 value area has a more favorable outlook. The entire corrective wave from June 22nd, 2019 to today (July 31st, 2019) appears to be nothing more than a standard correction but also a very clear example of a bull flag. Bull flags are strong bullish continuation patterns. In order for a new yearly high to occur, there is some key resistance that Litecoin will need to battle through.
The closest and most immediate resistance is a move above the 6/8th inner harmonic at 98.81. Above that are two more immediate resistance levels. First, there is the outer Gann arc. This arc acts as the final and most difficult arc for price to move above. But once it does, prices will generally gravitate or move to the next square and arc above, which would be near the 120 value area. The second resistance zone near the arc is the current downtrend line (black trendline) which is slightly above the 100 level. If price can break above that, then the next important resistance level is at the 2/8th Major Harmonic at 112.50. This is one the most important and difficult levels for price to cross on the chart. However – if price can move and maintain a close above that Major Harmonic, then we will most likely see the development a 3rd Motivewave higher, which could bring price to the all-time high near at the 420 value area. However, given the broader cryptocurrency markets continued bearish nature against Bitcoin, any rally in Litecoin along with the rest of the altcoin market could see Litecoin very swiftly and easily breaking about the all-time high and into brand new all-time highs.