Litecoin price was greatly affected by the uncertainty that hit the bitcoin market last week, so although the week started by a small bullish wave that drove the price up to a high of about $2.00, the market’s buying power failed to support this advance and the price fell to reach a low of around $1.7 on the 5th of February.
By studying the 1 day Bitfinex (LTC/USD) chart from tradingview.com and plotting the Fibonacci retracement fan along a trend line that extends between the high reached on the 13th of November ($4.36) and the low reached on the 14th of January ($1.09) (look at the below chart), we can better evaluate past and present trends. Despite the fact that the downtrend that started on the 25th of January was reversed by the 0.618 Fibonacci retracement fan line, last week’s trading volume failed to push the price up to test the $2.4 resistance level.
By studying the 4 hour Bitfinex (LTC/USD) charts from tradingview.com and plotting the William’s Alligator indicator accordingly (look at the below chart), we can see that the market didn’t exhibit a prominent trend last week, as the price was moving sideways to the $1.77 level. However, the price is currently above the 3 moving averages of the alligator and despite the fact that the gap between the 3 moving averages is quite narrow, their arrangement is in favor of a bullish wave that can take litecoin price up to $2.4 soon (red line above the blue line and the green line above both).
Litecoin price failed to rise last week, as it was influenced by the bitcoin market. Technical analysis is highly suggestive of a bullish wave pushing the price up to $2.4 next week.
Charts from Bitfinex