Technical outlook:
Litecoin dropped through the $52.00 low during the New York session on Tuesday which came in line with projections of a potential decline discuscussed earlier. The crypto has carved a low around the $51.00 level on Wednesday and is now trading close to the $52.50 mark. Bulls are looking poised to hold prices above the $40.00 low to keep the structure constructive.
Litecoin has carved a classic larger degree downswing between $41.3 and $40.33 since May 2021. The corrective zigzag looks complete around $40.33, bouncing right off the channel support after dropping under it. A high probability remains for a bullish bounce from the current levels and a push towards the $175.00 and $295.00 levels going forward.
Litecoin might have just completed its first larger degree wave around the $40.33 mark. Ideally, a pullback rally is expected to materialize before the next downswing could resume in the coming months. Please note that prices could still drop towards the $48.00 levels in the near term before finding support and turning bullish again.
Trading plan:
Potential rally towards $75.00 and up to $175.00 against $40.00
Good luck!
