Litecoin Retraces to Value Area

Litecoin, along with Ethereum, faces a significant pullback, but respects support from two trend lines. The Kovach Momentum Indicators are still bullish, but levelling off. The Kovach Reversals Indicator marks rejection from the upper bound with a red triangle, confirming a rejection of highs.

This rejection has likely formed wave 4 of the corrective segment of a 5-3 Elliott wave. We expect more consolidation or even pullback before entering wave 5, which completes the impulse, after which we expect even more pullback.

CONCLUSION – Consider adding to a position but be prepared for more pullback.

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