General Trend

The chart currently shows a transition from an uptrend to a potential sideways or downtrend. The price initially moved upwards but has recently faced resistance, resulting in a decline below a prominent moving average (blue line).

Support may be found near the $95 to $100 $LTC levels, while resistance lies around $120 to $125. This reversal from the peak indicates selling pressure overcoming buying pressure.

Market Structure

There is a noticeable shift in market structure following the peak near $150. The strong downtrend candlesticks suggest a break in previous bullish momentum, indicating a bearish market sentiment. This break could signal further downside movement unless reversed by new buying interest.

Liquidity Zones

Key liquidity zones can be identified around recent highs and lows. The high near $150 represents a significant liquidity zone where past buying interest may exist.

Conversely, the low at approximately $95 represents a potential accumulation zone where buyers might step back in.

Order Blocks and Fair Value Gaps

Around $110 to $120, a bearish order block may have formed as sellers aggressively pushed the price down.

Buyers may show interest again if price returns to these levels, leading to potential resistance. No major fair value gaps are visible on this section of the chart, but intraday gaps might appear on a lower timeframe.

Price Action Analysis


The chart displays a series of lower highs and lower lows, indicating bearish pressure. The moving average crossover hints at a trend change but should be confirmed by further price action. The candlesticks' long wicks suggest indecision and potential attempts to regain control by either buyers or sellers.


Indicator Analysis

The presence of moving averages shows short-term potential support at the blue line and long-term support at the red line. Currently, the price is below the mid-term average, suggesting further bearish momentum unless the price can recover above it.


Example Trade Setup

  • Entry Point: Consider a short entry around $110, where potential resistance from previous order blocks or liquidity absorption may occur.

  • Stop Loss Leve|: A stop loss could be placed slightly above $125 to minimize risk if the price surpasses noted resistance.

  • Take Profit Level: Aim for a take profit near $95, aligning with previous support and offering a favorable risk-to-reward ratio.

  • Reasoning: The suggested trade follows the bearish trend and capitalizes on the potential resistance at $110.$LTC

Waiting for a confirmation of the downtrend resumption, such as a bearish candlestick pattern at resistance, would strengthen the trade's prospects.