LTC and EOS – Breakout seen but increase soon expected

LTC and EOS – Breakout seen but increase soon expected

LTC/USD

From Sunday, when the price of Litecoin was sitting at its highest point at $64.84 measured to the lowest point the price has been today which is at $58.572 we have seen a decrease of 9.67%. The price is in a downward trajectory as a breakout has been made from the ascending triangle made from the 26th of October.

On the hourly chart, you can see that the price of Litecoin has increased impulsively after an interaction with the $49.23 level in a five-wave manner. The triangle which was formed after could be considered corrective and is most likely the 2nd wave out of the starting upside move but it still unclear whether it would be another corrective one or an impulsive one.

Considering the rise we have seen from the 26th of October and the length of the corrective triangle I believe that the second one is more likely, but as a breakout from the triangle was made on the downside a sign of confirmation is needed. This could come in the form of price holding above the $57.558 significant level or above the lower one at around $52.4, but if the price continues moving below the second horizontal level in line it could indicate further lows for Litecoin.

EOS/USD

Similarly, as in the case of Litecoin, the price of EOS has also formed an ascending triangle after an impulsive increase and after reaching $3.61 on Sunday it started declining. The price decreased by 7.44% from there to the lowest point today at $3.34 around which the price is currently being traded and consequently made a breakout to the downside from the triangle.

As the triangle’s wave structure looks corrective, its continuation would be expected but not below the $3.27 horizontal level. Inside the triangle, we have seen two corrective structures developing which is why the current one is considered the final one after which the uptrend should continue, but if the price continues moving below the $3.2 level we could see further depreciation before the expected uptrend continuation starts.

The lower horizontal support level on which the corrective depreciation could end is the resistance from the consolidative horizontal range at $3, but the one at $2.8 which served as support in the mentioned range is a more significant one and its retest before the uptrend continuation would look reasonable in the price progression.

In either way, after the downfall ends I will be expecting another increase from which we are to see if this is the start of the higher degree uptrend or not.

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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