The test of any upward moving market is whether or not buyers show up on a dip. Looking at Litecoin (LTC), today's decline has brought LTC back to a Fib speed line it had broken above a few days ago.

We think it is essential for LTC to hold above 61. If it doesn't, it could a repeat of the false breakout the last time LTC tried to press through this line. We also think it is important psychologically for crypto as a whole. If LTC cracks and falls 10%, the rest of the market could crack with it.

Bottom Line: Days like today are where it pays off to have a neutral stance and have powder dry. If coins like LTC find support, this would add to the belief that now is the time to buy the dip. If LTC doesn't hold, the sidelines may be the best place to be.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice. The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.