LTC and EOS – Ascending trend lines broken, downside expected

LTC and EOS – Ascending trend lines broken, downside expected

Contents

LTC/USD

From last week’s low at $41.72 made on Friday the price of Litecoin has increased by 11.71% measured to the highest point on Monday which was at $46.61. Since then we have seen a decrease of 7.78% as the price fell to $43 area yesterday but made a minor recovery and is currently being traded around $43.6.

LTC and EOS - Ascending trend lines broken, downside expectedOn the hourly chart, you can see that the price broke down the ascending trendline which formed since the 11th of May when the price was sitting at its lowest after a steep downfall. This trendline indicated that the recovery seen is out of the same degree and was most likely an ABC to the upside. The breakout could be an early indication that the correctional upside movement has ended with the price now starting another move to the downside.

C wave has a clear five-wave structure but the 3rd wave is the shortest which it cannot be. Another move to the upside could have looked likely because of this but as the price moved inside the territory of the 1st sub-wave from the C wave at $43.9 this possibility is invalidated.  If the price continues moving to the downside and goes below yesterday’s low it could mean that the first five-wave move has developed to the downside in which case I would be expecting a correction to the half range at around $44.7 before the next downturn develops.

EOS/USD

From Monday’s high at $2.75 the price of EOS has decreased by little below 8% as it came down to $2.53 yesterday. After a slight recovery to $2.6 it’s currently being traded lower at around $2.56 and is in a downward trajectory.

LTC and EOS - Ascending trend lines broken, downside expected

Looking at the hourly chart, we can see a similar pattern to that of LTC but a different interpretation can be made. A wave in the Litecoin’s chart is the ABC in this one with the next move that came after to the upside being the B wave out of the descend ABC to the downside which is now developing its C wave. If this is true then the price is likely to continue moving further to the downside after this minor lower low is being made and is likely to end around the vicinity of the A wave’s ending point at $2.45

But if this is true, then uptrend continuation could occur after the completion of the descending ABC as a further correctional movement to the upside could be anticipated.

LTC and EOS - Ascending trend lines broken, downside expected
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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