Happy Tuesday Everyone!
Here is your daily dose of Technical Analysis on Litecoin and Cardano today!
Disclaimer: This is not financial advice
LTC Technical Analysis
Litecoin was working its way back and forth in a bit of a symmetrical triangle. There were range trades to be had but as of recently it has now broken downward through the support level. There is a bit of a general trend which has been followed as both support and resistance going back to when LTC was around 50$. It was broken previously when LTC ran down, tested as resistance and then it once again broke through and has been on the bullish side up until today. A close below the 197$ will be a bearish sign. However as I check the charts again right now it looks like LTC is rallying off this level once more using it as support. Buy in zones for LTC if it does drop below this level and close will be around 185$ for the 61.8 fib level and 175$ for the 78.6 fib level. Use tight stop losses as this is a fib retracement based solely on the immediate run up from 153$ to 253$ and no the overall run from 100$ to 253$. If those fib levels are broken we can start looking for a buy in position lower in accordance with the overall run.
As far as ichimoku cloud is concerned we have hit resistance at the bottom of the cloud on the daily, we have hit resistance on the top of the cloud on the 12 hour, however on the four hour we have reset to the bottom of the cloud, found support and we are now making our way back up into the cloud. Watch for your trading signs on ichimoku to either play the range in the cloud, or watch for it to either break down through the cloud or push up above it and take the trade from there.
ADA Technical Analysis
Cardano had a major run up with the Altcoin rally in December reaching all time highs on January 4. Since then it has been bearish with the rest of the alts in a steady decline. That being said ADA is in a zone that is quite respectable for a reload zone. It is now within the 78.6 Fib level of the overall run up from 350 sats to 9000 sats which is now sitting at about 2621 sats. It has been following a downward wedge getting tighter as time goes on while also starting to level off. This level it currently sits at corresponds very nicely with a previous resistance level that was found on the massive bull run as well. Bids can now be had at this level with a tighter stop loss right below for a shorter term trade and farther away for a longer term trade with a potential to dollar cost average in if it moves lower. If ADA does move below this level breaking previous support and the fib level look for a new buuy in point at 600-1200 sats corresponding with the previous resistance and almost a 100% retracement.
The ichimoku cloud looks pretty much bearish all around. We are just seeing signs of a TK/Kijun cross on the 4h but thats about it. That being said that is how reversals start so watch the four hour to see price make its way back up breaking both tenkan and kijun, then the overall falling wedge, then push its way back up reaching the cloud and so forth. Either way we are waiting for a few signals on the ichimoku cloud when it comes to ADA.
Thank you very much for watching and taking the time to check out my content! Of course this is all subjective so if you see anything I do not by all means let me know and of course if there is a specific altcoin you'd like me to take a look at for you just let me know in the comments and I will be happy to review it!