Relevance up to 11:00 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Technical outlook:
Litecoin dropped through the $52.00 low during the New York session on Tuesday which came in line with projections of a potential decline discuscussed earlier. The crypto has carved a low around the $51.00 level on Wednesday and is now trading close to the $52.50 mark. Bulls are looking poised to hold prices above the $40.00 low to keep the structure constructive.
Litecoin has carved a classic larger degree downswing between $41.3 and $40.33 since May 2021. The corrective zigzag looks complete around $40.33, bouncing right off the channel support after dropping under it. A high probability remains for a bullish bounce from the current levels and a push towards the $175.00 and $295.00 levels going forward.
Litecoin might have just completed its first larger degree wave around the $40.33 mark. Ideally, a pullback rally is expected to materialize before the next downswing could resume in the coming months. Please note that prices could still drop towards the $48.00 levels in the near term before finding support and turning bullish again.
Trading plan:
Potential rally towards $75.00 and up to $175.00 against $40.00
Good luck!
