FX.co ★ Technical analysis of Litecoin/USD for September 14, 2021

Yesterday Litecoin rose more than 30% within a few minutes after a Press release saying that Walmart would start accepting Litecoin as payment. Within an hour the news was rejected as "fake news" and Litecoin quickly moved back to the level near 180.00 from before the fake news and this is also where we see Litecoin trading this morning. However, the rally to a high of 237.88 gives us a very good indication of the ongoing price action.

If we were in doubt whether Litecoin had peaked at 232.64, we can now say, that isn't the case. The break above the former peak at 232.64 tells us that the price-action since the peak is an expanding flat correction and more upside pressure will come when this correction is complete. This also fit our favorite scenario, that a possible "Accumulation Cylinder" could be building. Under this scenario, Litecoin should move to a high of 491 and maybe even closer to 568 before turning lower in the last leg of the Accumulation Cylinder, which ultimately calls for much higher levels, but first we need to let the formation build correctly.