Hello, dear members of LeoFinance!
Today I will comment on the price chart of Litecoin. So, let me start!
First of all, I would like to mention that, in my view, in the daily chart (1-D) Litecoin was trading in a Falling Wedge for almost 16 months (from April 2019 till the end of July 2020). Then a breakout happened (in August 2020) and the cryptocurrency was able to exit the wedge:
However, as seen in the chart above, a bit later a pullback started and now LTC/USD is fluctuating downwards at the upper line of the wedge.
Theoretically, many traders consider the Falling Wedge technical pattern as a trend reversal pattern which is formed at a bottom of a downtrend, indicating that an uptrend would come next. That's why if (during the pullback) LTC/USD doesn't enter again the wedge and, instead, it rebounds from the upper line of the wedge, I will consider it as a potential bullish signal. In case a confirmation of this bullish signal appears, for example some trend reversal candlestick formation (bullish formation) in the more heavy time-frames (weekly, monthly) I will probably open a long position.
To be continue ...
So, fellow LeoFinancier, what do you expect from LTC/USD in the near future?
p.s. at the time of writing one Litecoin costs $45.34 according to LeoFinance
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 14+ years, and as a cryptocurrency analyst for the last 3+ years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency trades, investments and etc.
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