The crypto revolution has already produced thousands of different currencies, many of which would probably fail to survive the test of time. One of the ones that maybe would is Litecoin. As of this writing, with a market capitalization of roughly $2.8 billion, Litecoin is the fifth largest virtual currency, behind Bitcoin, Ethereum, Ripple and the recently created Bitcoin Cash. Being a top 5 crypto token often puts Litecoin under the spotlight of the trading community, so we decided to take a look at its price chart and see if a recognizable Elliott Wave pattern would emerge. Here is what we found.
The 30-min chart of LTCUSD reveals a textbook 5-3 wave cycle. A five-wave impulse to the upside from $44.70 to $57.30, followed by a three-wave A-B-C correction down to $50.16. In fact, the sub-waves of each of the three impulsive waves – 1, 3 and 5 – is also clearly visible. According to the Elliott Wave Principle, if this count is correct, the pair is ready to take off, because the trend is now supposed to resume in the direction of the impulsive sequence. The bullish outlook would be invalidated only if the price decline below the starting point of the five-wave rally. This makes $44.70 our invalidation level for this count. As long as it holds, the odds remain in the bulls’ favor. The $60 mark looks like a reasonable first target.