EOS/USD and LTC/USD – Further decline expected

EOS/USD and LTC/USD – Further decline expected

Contents

EOS/USD

The price of EOS has decreased back to the levels of Monday’s low as it came down by 4.81% to $3.496 at it’s lowest point today. It is currently being traded slightly above $3.5 mark but is struggling to make any movements and is stuck in a tight range. This is indicated by the wicks on the hourly candles from both sides which you can see from the hourly chart below.From the yearly high at $4.05 which was made on the 14th of January the first time and later retested on the 17th, we have seen a decrease of 15.7% measured to the Sunday’s low at $3.42. This amount of decrease in combination with the wave structure and the impulsiveness seen, especially on Sunday implies that the correction of a higher degree started with the mentioned decline of over 15% being its first wave.

If this is true and the third one to the downside has started, projection the length of the 1st wave we come up with a target of around $3.1 which is slightly below 0.5 Fib level.

LTC/USD

From the start of the week, we have seen the price of Litecoin slightly increasing as it came from $55.8 at its lowest point on Monday to $59.155 at its highest point yesterday. But since yesterday’s high another move to the downside has occurred with the price currently being traded around the same levels as on Monday’s low.

Looking at the hourly chart, you can see that the price of Litecoin has started moving impulsively to the downside again falling below the 0.382 Fibonacci level, wiping out all the recovery made since the start of the week. Since the price previously broke below the upper ascending trendline it was an early indication that we have seen the end of the impulsive increase from the start of the year of over 61%.

As the price continued its steep decline this is most likely the beginning of the 3rd wave to the downside out of the corrective structure from the higher degree. This could be the three-wave correction after which further increase would occur, but it could also be the first sub-wave of the higher degree correction in which case the price of Litecoin could fall back below $50 before another upturn starts.

In either way, from here I would be expecting further decline below the 0.5 Fibonacci level which is the ending point of the 1st corrective wave. If we project the length of that first wave on the ending point of yesterday’s high (presumed 2nd wave’s ending point), the target of $51.7 comes as a potential ending point of the current decrease which would bring the price of Litecoin to potential interaction with the lower ascending trendline where it might find support.

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Nikola Lazić

Expertise: Cryptocurrencies, Technical analysis, Elliot waves, Fibonacci Nikola has a bachelor degree in Sociology, which gives him the edge in the financial market, knowing a lot about herd mentality. That is why he uses Elliot wave principles mostly, in combination with Fibonacci levels. He started learning more about financial markets back in 2015 and is now a full-time trader. As an anarcho-capitalist, he fully supports the vision of decentralized future offered by cryptocurrencies, that's why his attention and interest are mostly focused on them. His analysis has been praised by some of the most influential people from the cryptocurrency scene, like Jeff Berwick, the founder of The Dollar Vigilante Newsletter, Vit Jedlicka, the president of Liberland, and other trader colleagues.

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