LTC/USD PAIR BITFINEX:LTCUSD wicked off of the first fib level, completely normal in my opinion. The Chalkin Money Flow (SURPRISE SURPRISE volume indicator :D) showed a decrease in buying pressure as the price moved up, creating a 100% predictable cool down and pull back. I don't expect LTC to come down too far before stabilizing. If the volume picks back up, then it will continue for a smaller push back to ATH levels if we see short-term mainstream interest continue.
Our strength and momentum indicators are getting the much needed break they wanted for a stable price. I do expect a bit more of a drop before we continue bullish but nothing crazy showing as of now.
LESSON: Momentum and strength indicators can be at the ceiling (topped out) and a price can continue to rise if the volume levels show no divergences, look at BTC or in the case LTC's rise on price but topped out Stoch and RSI. Volume showed the price continuance at $230 but began to reveal the divergence in buy pressure shortly after and making it clear around $300-330 (RSI and STOCH showed weakness too even thought the price continued up from the FOMO. Predictable 100%.
Next time someone says "Oh the RSI is capped or the STOCH or such and such is capped we are going down", take a look at the volume indicators like a wise day trader does. ;)
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I am expecting a small drop on LTC/USD pair to $280-$285 range. Will update if it appears to test below that.