Can Litecoin Break Through This Key Resistance Level?
Litecoin has been dominating the market lately and leading the altcoins to higher highs.
However, we are now at a very important resistance for Litecoin.
It is going to take a lot more volume to break the previous support level that has now flipped as resistance.
We are in a massive rising wedge with declining volume and bearish momentum is starting to take over.
The only thing I can see that keeps Litecoin propped up here and breaking through the resistance is that short interest is at all time highs on Bitfinex and much higher than long interest right now, which means we could get a short squeeze that takes us for further upside momentum.
One big volume push could create a cascade of short liquidations to push us to higher highs.
Either way, I would encourage you to raise stop losses and/or hedge your profits if you are still in on this trade because if it turns down, it'll probably be fast and vicious.
If we do break down from this wedge, I'll be looking at a potential re-entry around the 70.6% fib retracement level for a strong S/R flip.
Happy trading!
However, we are now at a very important resistance for Litecoin.
It is going to take a lot more volume to break the previous support level that has now flipped as resistance.
We are in a massive rising wedge with declining volume and bearish momentum is starting to take over.
The only thing I can see that keeps Litecoin propped up here and breaking through the resistance is that short interest is at all time highs on Bitfinex and much higher than long interest right now, which means we could get a short squeeze that takes us for further upside momentum.
One big volume push could create a cascade of short liquidations to push us to higher highs.
Either way, I would encourage you to raise stop losses and/or hedge your profits if you are still in on this trade because if it turns down, it'll probably be fast and vicious.
If we do break down from this wedge, I'll be looking at a potential re-entry around the 70.6% fib retracement level for a strong S/R flip.
Happy trading!
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