What we have here is a 4 hour chart of Litecoin to give you a good perspective of what the chart is doing. You can see the top yellow line how we are consistently hitting that line and we are following a massive downtrend.
On this next chart which is a 2 hour view of Litecoin you can see the movement shown by the arrows in blue. It makes an initial downward impulse move which bounces off that long-term support which held this initial bullish move in tact for over a month and it started to make a CORRECTIVE pattern… The corrective pattern seen where we saw massive up then down moves in a very small amount of time is a pattern which tells us that there is another drop about to occur. This one could be considered a wedge or flat pattern and last night we just saw the price of LTC break that lower Trend-Line.
Now I am projecting the price to drop to around $135 range by looking at the symmetry of the moves of the impulse waves. This does not mean that it will happen exactly how I am projecting but it gives a good idea at what we are looking at. By using the fib numbers I am expecting it to at least travel 100% of the prior move so that should take us to the $135 range. Now once it hits this range it can go further and if it does break that $135 range expect it to hit the $118 range. At either of these points it is a good idea to buy back in as the next impulse move will take it to well over $200 where we will start taking profits before expecting another smackdown in price to the prior low seen around $100.
There is the application of the Litepay network which might cause a massive impulse in LTC where we will ride it up and will probably see the low of $100 tested ever again. However, this has been pushed out as it was supposed to come out February 26th. In the meantime I am holding out of LTC and will re-enter a partial position at $135 range and if it breaks that level and goes to the $118 enter another partial position and hold off on the remainder of the my position until it breaks out of this downward move protected by that downward moving yellow trend-line. Let me know if you have any comments or questions regarding my analysis on LTC and let’s see how this plays out.