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$LTC | Descending Butterfly Pattern Approaching Reversal Point🦋📉
Current Price: $121.28
Weekly Change: -2.71%
On the weekly timeframe, a descending butterfly pattern is forming — a harmonic pattern used to identify potential reversal areas after strong upward waves. This pattern relies on precise Fibonacci ratios between the movements XA, AB, BC, and CD.
📉 Monitoring Levels
• Potential Reversal Area (D): Near $133
• Correction Targets:
– First Target: $117 (38.2% of CD)
– Second Target: $107 (61.8% of CD)
• Stop Loss: Above $135 to avoid false breakouts
📌 Additional Confirmation Signals
• KDJ Indicator in Overbought Area (J = 76.86)
• Parabolic SAR Indicator indicates potential reversal at $109.09
• Reversal candles or a decline in technical momentum supports the bearish scenario
🧠 Trading Strategy
• Enter at Point D after confirming the reversal
• Use a flexible stop loss above the PRZ area
• Monitor trading volume and momentum to confirm the trend
📢 Follow the channel
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