LTC and EOS – Breakout momentum still strong, but recovery expected soon

LTC and EOS – Breakout momentum still strong, but recovery expected soon

LTC/USD

From Monday’s open when the price of Litecoin was sitting at $56.62, we have seen a decrease of 11.84% as the price fell to $52.561 at its lowest point today around which it is currently being traded. In the last couple of hours, we have seen a decrease of 4.8% with the price still being in a downward trajectory.

On the hourly chart, you can see that the price continued moving below the $57.55 horizontal support level after a breakout from the ascending triangle. The level was first retested and offered to serve as support but after a corrective increase, a move below it occurred. The price is currently retesting the lower horizontal support level and judging by the wick on the buyer’s side we can see it holding at least for now.

Previous to today’s decrease we have seen a contracting triangle which is usually seen in the 4th wave if in impulse or in the B wave if in a correction, so the current decline should be the ending move out of the breakout downtrend. This is why I would be expecting further support establishment with some consolidative price action before the start of the recovery.

The expected recovery could be the 3rd wave out of the next impulse to the upside or could be C wave from the ABC correction but in either way a five-wave move should develop above the previous high at $66.

EOS/USD

At the start of the week, the price of EOS was sitting at $3.425 at its open. From there we have seen a decrease of 13,45% measured to its lowest point today at $2.964 around which it is currently being traded.

Looking at the hourly chart, you can see a similar pattern developing like in the case of Litecoin as a breakout from the ascending triangle has been made. Unlike in the case of Litecoin, the price of EOS hasn’t reached its lower horizontal support level but the resistance point of the horizontal range prior to the spike to the downside on the 24th of October. This is why we could see further depreciation to the lower horizontal level at $2.86

This could still be an ABC correction after the five-wave impulse wave to the upside after which another increase would be seen. But we could be seeing another corrective increase after which would end this move on the third wave and lead the price of EOS for a lower low.

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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