Litecoin dropped close to $140 yesterday after completing what could later be a head and shoulder pattern. the following 2-4 May Litecoin price prediction looks at LTCUSD based on Elliott wave theory and technical analysis.
02 May, AtoZMarkets – Litecoin rallied to $157 last week to complete the second shoulder of an emerging head and shoulder pattern. price dropped afterwards. Today, price started with a little rally. Will this rally lead to something stronger upside or price would dig deeper? Litecoin wave pattern, since the start of the current bullish move last month, is a bit different from what can be seen in other major coins. Whlie BTC, XRP and ETH completed an impulse wave, LTC looked corrective. Litecoin has a higher chance of dropping than not.
In the last update, a head and shoulder pattern was forming at the top. Head and shoulder is a reversal pattern. Usually when this pattern occurs at the top of a corrective wave pattern, price will move in the opposite direction. The chart below was used in the last update.
The chart above shows the emerging of an Head and Shoulder reversal pattern. If price still holds at 157.25 or slightly above to complete the second shoulder, we might see LTCUSD dropping in the coming week. A fast rally above $166 is possible but a drop to $130 is more likely.
Price rallied to 157 days after and dropped the neck of the head and shoulder afterwards. The neckline has not been broken yet and price could morph into something else. The chart below shows the current LTCUSD update.
2-4 May Litecoin price prediction: what next?
Price stays around the neckline and still stays between $157 and $136 important levels. If it breaks below it, we should see price below $136 and by extension $120. The situation looks bearish unless price rallies above $157. Stay tuned for the next update
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