As XRP remains to stay flat, I did another analysis on Litecoin. My last one did not work out and thus I changed my strategy, focusing more on demand zones and patterns. I think I’ll reconsider using triangles etc. in general as these have failed me multiple times. Okay, here the analysis of the 4h chart!
So, as we can see, LTC showed lots of strength in the $75 zone since the 3rd of April. Dumps were rejected four times in this zone (yellow circles, green one), indicating heavy buy pressure. As is keeping up for LTC, I doubt we’ll dump through this price level. Furthermore, buy orders are piling up in the orderbook, for example on Kraken.
The last rejection of the four dumps showed something significant (green circle, marked with 1), namely a strong green candle (stronger than the previous three candles after the dumps). On the 1hr chart this moment can also be seen as a strong dragonfly (indicating heavy buy power – typically a indicator). This was a strong buy signal, which so far is not disappointing me.
Deriving from this, I believe we will soon be testing the $80-85$ zone as we did this morning, that is, if doesn’t drag us down again when it fails to break the $5400 level. For the medium term resistance, I believe we will test 95$ zone again in some weeks. In combination with the rising , I have every confidence that the bottom of the short term pullback is in for LTC.
Published at Tue, 16 Apr 2019 11:42:04 +0000
