Share:
  • Litecoin price rejected from moving above $200.
  • Head-and-shoulders pattern warns of strong moves lower, surpassing August lows.
  • Oscillator values void any near-term support holding.

Litecoin price has not done very well since the false report on Walmart accepting Litecoin news came out on Monday. Despite the fake news, many bulls and bears thought there might have been some strong follow-through higher, but the past two trading sessions have resulted in lower closes and the development of a very bearish reversal pattern: the head-and-shoulders pattern.

Litecoin bulls possibly led to slaughter, -23% drop from the Friday open in play

Litecoin price faces increasing selling pressure if it can’t maintain the $180 value area. $180 is vital to Litecoin because it represents the 2021 VPOC (Volume Point-Of-Control) in the Market Profile indicator. The Market Profile measures volume horizontally rather than vertically. Traditional volume measurements commonly seen below candlesticks measure the amount of something traded during a particular time, but Market Profile measures how much was traded at a particular price. In other words, $180 is where the most amount of trading of Litecoin has occurred in 2021. It’s a powerful support and resistance level, and it is that level that bulls are attempting to defend.

LTC/USD Daily Ichimoku Chart

Below $180, the volume profile thins out, and it is easier for Litecoin to move lower than to move higher. Drawing a Fibonacci expansion from the September 5th high to the September 8th swing low shows the 100% expansion level at $142.40. That is right on top of the 61.8% Fibonacci retracement level, which has the same value. Within the volume profile, $140 is the top of a high volume node, adding strength to the support of the two Fibonacci levels.

The bearish outlook will be invalidated if three conditions are met. First, the daily must close above the Tenkan-Sen and Kijun-Sen –around the $204 value area. Second, the Lagging Span needs to trade above the candlesticks – in the $200 value area. Third, the Relative Strength Index needs to slope up and away from the level 50 zone.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE’s social dominance and relevance have been increasing since February 20. This week, top cryptocurrency exchanges have shared PEPE and related memes in tweets on their official X handle. 

More PEPE News

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI and Omni Foundation could help NFTs across the Ethereum ecosystem transition to scaling solutions and rollups. The two have proposed a new token standard, xERC-721, with a “code minimized” upgrade to the current standard. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

More Bitcoin News

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price inches closer to support at $0.52 after the recent developments related to the SEC’s lawsuit against Ripple. Kraken cited a key part of the SEC’s lawsuit against Ripple that could impact the outcome of its own legal battle against the regulator. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP