One of the most powerful corrections over the past year has been seen by participants of the Litecoin (LTC) market. Since March 2020, sellers have managed to take the initiative 4 times. An interesting fact is that all these 4 times the Litecoin price did not fall by more than 40%. The exception was the fall wave from 12 May 2021, which is clearly global in nature. If we look at the daily timeframe, it becomes clear that the trend of buyers who were confidently keeping from December 2020 was broken:
The breaking of the critical range of $224-237 triggered a large number of stop orders of buyers who kept their positions for six months. As we can see on the chart, the main volume of sales began just after the breakdown of this range down. Further, the LTCUSDT price fell due to the panic of traders and once again updated the local low, stopping at $118.
The first signal of the beginning of the Litecoin fall was the mark of $334
However, could you see the beginning of a powerful fall wave earlier? In the previous article, we warned about LTCUSDT price reaching maximum values.
The critical point for buyers to lose initiative was the mark of $334. In the article, we argued why. If we look at the 4-hour timeframe, we see that after break and retest of this mark from below, the LTC market began to collapse:
A confident break downward and lack of interest among buyers to regain control of the critical point gave a powerful signal to sellers.
There is huge interest from buyers in the range of $116-124
The liquidity price zone of $116-124 is not the first to take a hard hit. On the history, we see that buyers fixed above this range for a whole month before continuing the global wave of Litecoin growth in January 2021. The strength of the LTC price rebound indicates that investors are interested in this coin. The first stop of the Litecoin price is likely to be in the range of $224-237. Given the importance of this range, we do not believe that buyers will be able to take control of this range the first time around.
Moreover, considering the previous impulse of the fall. Though, the test of $167 will be a good signal to buy Litecoin. By keeping this mark, buyers will confirm their intentions to continue the local growth wave up to $282. Be careful with your positions because the market is very volatile now.
P.S. Our global forecast for LTCUSDT is working out perfectly so far:
