Litecoin - Rising wedge - Near term correction ahead?
TL;DR: Watch for a rising wedge pattern on Litecoin, if it resolves to the down a move to around 100ish USD is possible, prevailing trend is strong, move above 23.6% fib retracement signals a brief respite before a move for the next target at around $170 USD
After quite a powerful and sustained rally, Litecoin appears to be retreating, a weekly rising wedge pattern has formed and it is prudent to watch how this pattern unfolds, if Litecoin resolves to the downside, a move to around $100 USD is on the cards, this would merely be a return to the prevailing weekly trend. In the event that Litecoin does resolve to the downside, this could very well present a very good initial entry point.
It is also worth noting that Litecoin has hit the weekly 9 ema, which has acted as very strong support in the past (including the 2017 bull run), therefore any close below this level could suggest that a more prolonged consolidation period has begun. Litecoin has also moved above the 23.6% fib retracement level (around $117 USD) would also makes the case for a pullback all the more convincing.
All in all the trend looks quite strong, watch for for a break of the wedge pattern, and as with this market (and indeed all markets) keep a keen eye on your stops and never risk more than you can stomach to lose.
After quite a powerful and sustained rally, Litecoin appears to be retreating, a weekly rising wedge pattern has formed and it is prudent to watch how this pattern unfolds, if Litecoin resolves to the downside, a move to around $100 USD is on the cards, this would merely be a return to the prevailing weekly trend. In the event that Litecoin does resolve to the downside, this could very well present a very good initial entry point.
It is also worth noting that Litecoin has hit the weekly 9 ema, which has acted as very strong support in the past (including the 2017 bull run), therefore any close below this level could suggest that a more prolonged consolidation period has begun. Litecoin has also moved above the 23.6% fib retracement level (around $117 USD) would also makes the case for a pullback all the more convincing.
All in all the trend looks quite strong, watch for for a break of the wedge pattern, and as with this market (and indeed all markets) keep a keen eye on your stops and never risk more than you can stomach to lose.
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