FX.co ★ #Litecoin chart analysis

Hello traders, respected colleagues at InvestSocial! LITECOIN — correction after an impulsive decline and preparation for a downside breakout 1. Timeframe and context The analysis is conducted on the hourly timeframe (H1), allowing tracking of intraday impulses and liquidity accumulation zones. After a prolonged downward movement with a series of powerful red candles, Litecoin reached a zone around 69.00–69.50 and entered a limited upward correction phase. The current price around 69.07 represents a typical consolidation after a strong decline, where liquidity is attracted, but without a confident return above the broken levels. 2. Market structure: Local bearish trend Currently, a pronounced bearish trend persists, confirmed by: * Sequential formation of lower highs and lows throughout the visible range * Limited range of upward corrections — bullish candles are weak, with low volume and quickly absorbed by selling pressure * Dominance of selling pressure throughout the downward range This indicates full control by sellers and a lack of sustainable demand for a reversal or deep recovery. 3. Liquidity and levels During the impulsive decline and current correction, liquidity zones have formed below current prices: * The main liquidity cluster is observed below recent lows around 69.00–69.07 * These levels temporarily hold the decline but do not show sufficient buying interest for growth * Previously broken supports now act as resistance Upon a retest, we expect stop-loss activation and increased selling pressure. 4. Projected movement: Downside breakout A resumption of the impulsive decline is projected: * After the completion of the current weak correction, a test and breakout of the lower accumulation boundaries are possible * Increased volatility and stop-loss triggering will accelerate the downward movement * Renewal of recent lows is expected with a continuation of the bearish impulse 5. Movement targets (Take Profit) TP1 — 68.50 * Nearest support and potential accumulation zone * Suitable for partial profit-taking TP2 — 67.50 * Next significant liquidity area * Level for intermediate profit-taking TP3 — 66.50 * Key zone of previous local lows, possible end of the wave 6. Risks and scenario cancellation conditions The scenario will be canceled if: * Price confidently establishes above 70.00–70.50, indicating a possible return of bullish control * Formation of a new upward structure with recent highs being surpassed 7. Final conclusion * Trend: locally bearish * Correction: limited upward phase before a likely continuation of the decline * Liquidity: concentrated below, potential impulsive downside breakout * Targets: 68.50, 67.50, and 66.50 An important point — trade in the direction of the current trend, strictly adhere to risk management, and gradually take profits. Trade thoughtfully!