Litecoin price has adjusted itself  at the 78.6% Fibonacci retracement level after 9 consecutive bearish days. LTC recorded the best day on May 31 with gain of 10%. The crypto is positioned below the 50-week exponential moving average (EMA), forecasting a bullish long-term recovery. Litecoin price went on a bearish tone for nine days anddepicted oversold conditions on the daily Relative Strength Index (RSI) before the 9.8% gain on July 21. The rebound from the 78.6% retracement level of the 2020 to 2021 bounced from the same level twice, confirming it as legitimate support and moving forward. More importantly, LTC is constructing a new, timely entry price to accommodate those investors arriving late. Litecoin has made a falling wedge with an influential support at 108.20 and June low of 105. This indicates that there might be space for a bearish sentiment on a shorter note and then resetling itself with hawkish sentiments. The  breakout above $115 was a good opportunity for investors. Still, LTC may be creating a new, more safe opportunity, as it is making a cup-with-handle base structure on the four hour chart. The handle is finding support a long the 50 four-hour SMA, currently at $117.97.

BULLISH AND BEARISH OPPORTUNITIES/ CONDITIONS :

The current entry price for the new structure is the resistance in shape  of the handle at 122.20 and the expected move of the support is nearly 18%, giving the target destination at 143.80. Such rally would give a breakout for Litecoin price, taking an exit of the falling wedge pattern, tackling resistance at the SMA50 with price at 142.50 and push LTC just near the critical barrier formed by the 2019 high of 146.00. LTC  price could experience a sell-off as well, but it may provide another bullish setup.  On a pullback, LTC investors can use the 78.6% retracement level at $108.20 as a point of entry, with the July  low of $103.90 as the stop. Any bearish indication beyond the low of July would signal a drop to the falling wedge’s lower support line at 94.00.

LTCUSD H4

Jul 24 2021