Litecoin has been trading below $80 for over a week. The following looks at what could happen next based on the Elliott wave theory.
August 23, 2019 | AtoZ Markets – The cryptocurrency market is still under the selling pressure after shedding over $50 billion in the last two weeks. Litecoin hit below the $75 critical level on August 15. It now looks very much likely that the sell-off will continue below $68. LTC remains the 5th largest crypto based on market capitalization according to data available on Coinmarketcap.
This week started with LTC climbing to $79 after the recovery seen last week. However, after the weekend, the sell-off continued and eroded all of the gains recovered in the previous week. In less than two days, LTC fell by 11% to $70. Price gained $4 afterwards in a minor bounce that might not lead to a serious rally.
Litecoin price analysis: important price levels
There was the main support level at $84 which also coincided with the 50% retracement of the 2019 rally. Price has broken below this level and now about to test the $68-70 support zone which is the next critical price level. If the price declines below this support zone, we might see a hit of the $50 handle. To the upside, the $106 level is very critical to the bullish recovery. A break above $106 could lead to the $146 January high and return the 2019 bullish trend.
Litecoin price prediction: Elliott wave analysis
From the perspective of the Elliott wave theory, the LTC decline from $146 is corrective. A double zigzag pattern will most likely complete this corrective phase before the bullish trend resumes. In the last update, we used the chart below.
Wave y (circled) is still ongoing. LTC was expected to dip further. However, the price has stayed steady instead, after it bounced off the $68-70 support zone.
The new chart above shows a minor bounce to $84 is possible before the price drops further. Currently, the 61.8% Fib-retracement level is providing support. If the price drops below, $49-50 (78.6% Fib-retracement level) with be the next target.