LIT Technical Analysis Feb 24

LIT is consolidating in a sideways market structure; although giving bullish signals above short-term EMA20, Supertrend bearish pressure and BTC downtrend increase reversal risk. Structure break (BOS) levels should be closely monitored: above $1.46 critical for HH/HL continuation.

Market Structure Overview

LIT’s current market structure is ranging sideways, squeezed in a narrow $1.32-$1.46 band. Current price at $1.34 level, 24-hour change -2.33% under mild pressure. Positioned above short-term EMA20 ($0.76) providing a bullish short-term outlook, but Supertrend bearish signal and RSI 48.64 neutral level prevent clear trend definition. MACD positive histogram shows slight bullish momentum bias, but MTF (multi-timeframe) structure has 17 strong levels: 1D with 3 supports/4 resistances, 3D with 2S/2R, 1W with 5S/3R imbalance carrying bearish risk. Overall structure in ranging mode without clear HH/HL (higher high/higher low) or LH/LL (lower high/lower low) pattern; last 24h range $1.32 low and $1.46 high defining internal swing points. This sideways structure can be interpreted as a consolidation phase awaiting volatility increase, but BTC downtrend adds extra pressure source for alts.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

Short-term bullish signals limited: Price holding above EMA20 ($0.76) showing higher low (HL) potential, recent swing low $1.32 (24h low) positioned higher than previous lows. MACD bullish histogram and RSI 48.64 poised for crossover above 50 signal potential initiation of HH/HL structure with BOS above $1.46. 1W MTF has 5 strong support levels (e.g., $0.5210 score 76/100), providing long-term HL base. However, no bullish continuation target exists; sustained break above $1.46/1.50 required for trend.

Downtrend Risk

Bearish risks more pronounced: Supertrend bearish (resistance $1.27), BTC downtrend correlation, and MTF resistance surplus (1D 4R). To watch for LH/LL formation: Break below $1.32 confirming lower low (LL) could test $1.1507 (score 72/100) and $1.0305 swing highs. Bearish breakdown target points to $0.7752. RSI below 50 and MACD weakness could signal transition from sideways to LH/LL.

Structure Break (BOS) Levels

Structure break (Break of Structure – BOS) levels critical for trend change. Bullish BOS: Close above $1.46 (24h high) forming new HH confirming EMA20-supported uptrend; target $1.50+ extension. Bearish BOS: Daily close below $1.32 (recent swing low) triggering downtrend with LH/LL; first target $1.1507 resistance-turned-support, then $0.9103 (score 77/100). CHoCH (Change of Character) with Supertrend resistance break at $1.27 bullish, staying below bearish. These levels reinforced beyond swing points with MTF strong levels: 1D support $0.6371, resistance $1.1507. Sideways continues without BOS.

Swing Points and Their Importance

Recent Swing Highs

Recent swing highs: $1.46 (24h high, fresh resistance), $1.1507 (score 72/100, key LH level), $1.0305 (score 71/100, intermediate). BOS above $1.46 invalidates these highs initiating HH structure. $0.9103 (score 77/100) strongest swing high, becomes revisited support in bearish scenario. These points define sideways upper band; rejection here carries LH continuation risk.

Recent Swing Lows

Recent swing lows: $1.32 (24h low, immediate support), $0.6371 (score 71/100), $0.5210 (score 76/100 major), $0.3868 (score 69/100). Hold at $1.32 provides short-term HL; break below causes LL structure breakdown. $0.5210 aligns with EMA20 as long-term base, pivot for bullish recovery. Swing lows strong per support scores, but BTC pressure heightens test risk.

Bitcoin Correlation

BTC at $63,293 level -2.18% in downtrend, key supports $62,931/$60,000/$49,685, resistances $64,646/$66,693. BTC Supertrend bearish and rising dominance creating additional selling pressure for altcoins like LIT. LIT highly correlated to BTC; BTC deepening below $62,931 increases LIT $1.32 BOS risk. Conversely, BTC recovery to $64,646 could trigger LIT test of $1.46. Altcoin caution: BTC downtrend continuation strengthens LH/LL scenario.

Structural Outlook and Expectations

Overall structural outlook sideways with bearish bias risk: Short-term HL/EMA bullish, but Supertrend/BTC pressure tilts toward LH/LL. Bullish BOS at $1.46 required for trend continuation, bearish BOS at $1.32 for reversal. Watch: MTF levels, RSI/MACD divergence. Lack of news limits volatility, but market structures change quickly – risk management essential. Educational note: HH/HL defines uptrend (each peak/trough higher), LH/LL downtrend; BOS breaks this structure, CHoCH gives early warning. LIT at $1.34 pivot; structure as is, no prediction.