The growth from May 2019 ended with breakthrough of the blue trend line and a test of the price range $112-115. The corection began after buyers failed in a proper manner update the local high on 22 June.
For a week, sellers lowered the price by 21%, but so far the price is above the price range of $112-115. Buyers, trading in the range of $130-140 for almost 2 weeks formed a liquid zone, which will be a certain test for buyers, if they keep $112-115. At 4-hour timeframe it is clearly seen that around $140 volumes significantly increase and at the moment, market participants regard the price range of $130-140 as a sales area:
Also, on the chart, we see that after breaking the blue trend line, buyers tried to restore growth, but managed only to test below the trend line:
Notice that the test was on increased volumes. So far, sellers handle the situation, but active actions of them ended on 27 June.
After approaching the marginal positions of buyers to their historical high, buyers began to reduce them, however, this began in the last two days:
Sellers continue to be indefinite in their mood:
According to the wave analysis, buyers form a wave (5), which, in the price of $140, was equal to the wave (3).
It was this mark that buyers did not manage to go any further. However, if buyers would gather strength for a new attack then the next target is $158-168.
A weekly candle closed over the price range of $112-115, and this fact does not give sellers a better chance of overcoming the fall on the big timeframe. It is the first red weekly candle for the last 9 weeks:
Globally, the Litecoin growth from December 2018 corrected the wave of fall by almost 38.2% (at a price of $158). Therefore, the prospect of testing this price remains high. Otherwise, if buyers do not keep $112-115, the next target is $102.
About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News