Litecoin attempted to rally on Wednesday but gave back the gains, just as it had done on Tuesday. At this juncture, it looks as if the Litecoin market is going to perhaps drop from here, as we continue to see the selling pressure just above current trading levels. The fact that we have formed a couple of shooting stars does suggest that perhaps we are continuing to find sellers just above.
It is worth noting that Bitcoin is running into resistance currently, and that will have a bit of a “knock-on effect” when it comes to the Litecoin market, as well as other altcoins. The $115 level seems to be the epicenter of selling pressure, so we need to be very cautious about trying to buy Litecoin at this extended level.
If we were to break down below the $100 level, then we could go looking to test the lows from last week, which has seen a lot of buying pressure. That being said though, if we were to break down below the bottom of that hammer, it would open up the possibility of the market reaching down towards the $80 level, and then eventually down to the $50 level. The market continues to see choppy behavior with a downward tilt, so it makes quite a bit of sense that the selling pressure is stronger than the buying pressure. You should probably fade rallies going forward on short-term charts.
That being said, if the market were to take off to the upside and finally clear the $125 level, then it is likely that the trend could change, but at this point in time it is almost impossible to imagine that happening. Obviously, the market would have to be pro-crypto all the way around for a smaller coin like Litecoin to truly take off.
Expect volatility, but short-term pullbacks could offer a bit of a building opportunity if you are cautious. I would not jump “all in” right away, so building a position is probably better if you choose to look at this from a longer-term perspective and are bullish. That being said, in the short term, it is still easier for this market to fall than it is for it to rise. The Litecoin market continues to be very noisy.
