Livepeer | Elliott Wave Analysis and Key LevelsOn the 8H TF chart for LPT, we observe clear local support and resistance zones with recent pullbacks exhibiting distinct price reactions. The price is oscillating between strong resistance and support levels, forming an Elliott Wave pattern, which suggests a continuation of the uptrend in the short term.
Local Support Zone:
Range: $20.40 - $18.90
This level acts as a primary buying zone where the price finds support and resumes upward movement. Significant buying interest in this range helps stabilize the price and prevent further declines.
Current Market Structure:
LPT is currently in the correction phase of the Elliott Wave pattern. The key support and resistance levels are critical in determining the next price direction. For further upward movement, the price needs to break through the strong resistance at $26.78 - $30.00, which will require increased buying volume. Otherwise, a pullback to the support zone at $20.40 - $18.90 could signal temporary price consolidation before a potential rise.
In classical Elliott Wave theory, after the completion of the fifth wave, a corrective A-B-C structure typically follows. This correction phase moves in the opposite direction of the primary trend represented by the five impulse waves.
Possible Scenarios:
⚪ Scenario 1 (Correction with Low Volume):
Wave C might pull the price back to the strong support level within the $20.40 - $18.90 range. This suggests the market does not exhibit aggressive selling, and buying interest remains at these levels.
🔴 Scenario 2 (Deep Correction):
If Wave C occurs with increased selling volume, the price might drop below the current support zone, potentially testing lower levels, such as $16.00 - $14.00.
Key Considerations:
Monitor trading volumes and price reactions at support and resistance levels to confirm the completion of the fifth wave and the start of the A-B-C correction.
Disclaimer: Content for seasoned traders only. Not financial advice. You bear sole responsibility for trading outcomes. ➖ DYOR 🧠 💡
