Hi friends! Welcome to this update analysis on Litecoin! Let's get it. Looking at the four hour chart, you can see that LTC has been rejected at the high of the bull flag, and has fallen below the 50 EMA (in orange.) This is a bit concerning, but you can see that the 50 has been violated a lot in the recent trading action, so it isn't very surprising. The 200 EMA (in purple) is the critical support level that needs to be held. If we fall from here, and confirm below the 200, that would be a negative development. However, we can see that the 200 EMA is converging with the 61.8% retrace at the moment, so it is strengthening that level as support.
If you'll notice, we still remain inside of a technical bull flag. I have extended the flag outward, but you can see that the flag formation has not yet been breached, so it's technically still a flag formation. The pink dotted trendline, is a secondary low level of support, and LTC is testing it heavily right now. If this level is breached, look for the 200 EMA to act as support. With that said, we remain inside of a bull flag, inside of the right shoulder of a potential inverse head and shoulders pattern. So, the overall vision is still intact.
I want to draw your attention to the 50% retrace (in red.) You can see that it has been an extremely important level of support and resistance. Most recently, it has been purely resistive, as LTC has slammed into it on multiple occasions, without sustaining a breakout. If we have a confirmed breakout above that level, it will be HUGELY bullish. For now though, let's monitor this bull flag, and the development of the right shoulder. Keep in mind that the bull flag appears to be trying to break down, but it's still a bull flag until that actually happens. Stay on your toes, and keep a close eye on the 200 EMA and the 50% retrace. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
Hi everyone, quick update on LTC, it has broken the 50 EMA, the dotted trendline, and the flag, and it's now testing the 200 EMA. If the 200 EMA falls, the selling could get ugly. However, the inverse head and shoulders pattern is still a technical possibility, so I am not yet abandoning it.
MagicPoopCannon
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@MagicPoopCannon, Keep in mind, though, that the 61.8% retrace is just below the 200, so that could act as support as well, if LTC gets down there.
frankzed
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@MagicPoopCannon, on my Kraken chart the price bounced perfectly off the 50 ema
The biggest plus point of LitePay was the spendable Card, now that being gone as card companies hate competition, no one is bothered with LitePay anymore except Merchants who want to increase their sales via marketing of Litecoin logo on their site.
The Utility and the news affect the sentiments -> which in turn affect the TA.
terumodoc
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Merci bo poop!
evansmichaelj
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I know that technical guys don't like to talk about news and its effects on stock price. But the fact that LitePay has been a disappointment is not good. It was the reason for much of the rise and if it doesn't start to work soon (which I don't think it will), then the price will continue to fall. It will fall even in the face of a rising BTC. I hope I'm wrong though.
Deabers
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@evansmichaelj, you are wrong. litepay isn't that much a dissapointment. the fact that the debit card didn't roll out doesn't really matter. Its just people trying to make you think it does to drive the price down. Litepay gave merchants processing- this is what matters. describing the debit card function of litepay as the core was a load of bullcrap. there are several other companies that can load up a debitcard with LTC currently if thats what you want. That being said, prices don't move to news like this. They moved when the fees got lowered but dont sit here on a TA website saying news is driving the price.
EtherSwinger
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@Deabers, it still matters, therefore Ltc hasn't been following Btc up yesterday
Deabers
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@EtherSwinger, LTC hasn't been following BTC because its on a different track. it hit its bottom earlier, in some ways LTC has been leading the way, not BTC. Just because BTC catches up doesn't mean LTC has gone to the crapper.