Litecoin Nearing Final Leg Of Bearish Wave Structure

Photo by Michael Förtsch on Unsplash

Looking at Litecoin, the price action suggests it is still unfolding a five-wave bearish impulse within wave (C). On the 4-hour chart, subwave 5 of wave (5) appears to be missing, indicating there could be one more leg to the downside before the broader corrective structure is complete.

Following the recent abc correction within subwave 4, Litecoin has started to break below a key channel support line. This development opens the door for an extended decline within wave 5, particularly if the price slips below the 50 level. Such a move would likely confirm continued bearish momentum in the short term.

On the downside, the area around 40 stands out as a potential zone of major support. This region aligns with the lower boundary of a larger triangle formation, where the market could begin stabilizing and searching for a more meaningful bottom.

However, an alternative scenario should be considered. If Litecoin stages an earlier and stronger rally, breaking decisively above the 70 level, it would suggest that the bottom may already be in place, invalidating the immediate bearish outlook.

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