Litecoin finds support at $70 and pushes above $75 in what could lead to another wave of rallies.
May 01, 2019 | AtoZ Markets – LTCUSD dropped over 75% of the gains recorded in April in a deep but healthy corrective dip that could be followed by another upsurge. Litecoin often moves in similar manners with Litecoin but 2019 has been a bit different. Litecoin performed better since December 2018 lows but Bitcoin did better in the April 2019 big surge. Overall, Litecoin has done better. In spite of the little differing price behaviours between these two cryptos, they have emerged into quite similar price patterns.
Since Litecoin bottomed at $22 and Bitcoin at $3100, they have emerged into an impulsive wave rally. However, while Bitcoin seems not to have completed the 3rd wave yet, Litecoin is making out for the 4th wave dip. The 4th wave dip has seen it lost 78.6% of the April upsurge and 38.2% of 345% gain since December 2018 low. LTC’s net gain since the $22 bottom is now over 200% which is still quite impressive compared to other cryptos in the top 20. The April big surge hit almost $100 which was the highest price since mid-June 2018.
How far is LTC from recovery?
The current dip is a bit of a setback but that was not unexpected. The road to recovery will not be straight. The next milestone is to surge above $109 resistance which tested in early February and late March 2018 before price finally broke below it in June and then followed by a free fall to $22 low in December. Above $109, price should attempt to break above $175 and $250 resistance levels before making an ambitious move to the all-time high at $370.
Litecoin Elliott wave analysis
Litecoin is advancing with an impulse wave and the current dip is the 4th wave. The 4th wave finds support at $70 as the chart below used in the last update shows.
Wave (v) was expected to start with a break above the wave (iii)-(iv) falling channel. Price has done exactly that and now heading toward $79-80 as the chart below shows.
A break above $85 is now required to push the 5th wave further to the $109 resistance level. Once the impulse wave ends, a 3-wave corrective dip should follow to $70 or below. At the current level, if the bullish momentum runs out and price drops deep below the wave (i)-(ii) channel, the bearish phase will most likely continue with a new leg downside.
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