Trade Setup Recap:
Pair: $LTC/USDT
Current Price: $90.25 (+10.30%)
Entry Zone: $90.50 – $91.80
Take Profits (TP):
TP1: $88.40
TP2: $86.20
TP3: $84.00
Stop Loss (SL): Above $92.60
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Technical Breakdown – Is the Pump Over?
1. Sudden Spike to Resistance Followed by Rejection
$LTC recently experienced a sharp pump, hitting a high of $93.70 before quickly pulling back. This type of move often traps late buyers and signals a potential local top—especially when followed by wick rejections and fading bullish candles.
The current structure shows price struggling to hold above $91, with multiple signs of exhaustion, especially as volume begins to decline while price attempts to stay elevated.
2. Bearish Divergence & Weak Follow-through
Momentum indicators like RSI may start showing bearish divergence, and the follow-through on recent bullish candles is weak. That usually indicates that the buyers are losing steam, making room for short setups.
This creates a solid case for a short-term bearish pullback, especially for scalpers or intraday traders.
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Why This Short Trade Makes Sense
Wick Rejections: The high near $93.70 was rejected with strong upper wicks, a typical sign of resistance holding.
Overextended Rally: After a +10% pump, some profit-taking is expected—creating room for a downside move.
Key Breakdown Level: $89.90 is acting as a pivot. A clean break below this level will likely accelerate the selloff toward lower targets.
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Confirmation is Key
Pro Tip:
Watch closely for a clean breakdown below $89.90 with volume. This would confirm the shift in momentum and increase the probability of hitting TP1 and TP2.
Without this breakdown, price could range or even fake out—so patience and discipline are essential.
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Short Trade Strategy
Enter Gradually in the Zone: The ideal short entry lies between $90.50–$91.80. Consider scaling into the trade for better positioning.
Adjust Stop Dynamically: If TP1 is hit, consider trailing your stop-loss to protect profits as the move develops.
Watch the Macro Market: Broader market direction (BTC, ETH) can impact LTC. If the overall market turns bearish, this setup strengthens further.
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Final Thoughts
$LTC/USDT looks poised for a short-term correction after an explosive move upward. The signs of exhaustion, weakening momentum, and wick rejections all point toward a short opportunity unfolding.
Traders should stay alert for confirmation before jumping in, but if the breakdown occurs, this setup could provide a smooth ride down to multiple targets.
Smart trading is patient trading. Let the chart confirm before committing.