LTC and EOS – Breakout seen but would it be confirmed?

LTC and EOS – Breakout seen but would it be confirmed?

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Last Updated on April 29, 2021

LTC/USD

The price of Litecoin has been on the rise since the 26th of April when it fell down to $211. From there we have seen an increase of 26.4% as it came up to $266.6 at its highest point. It started moving sideways from yesterday’s high and is currently sitting slightly lower but is in an upward trajectory overall.

LTC and EOS

On the hourly chart, we can see that the price has started breakout out from the symmetrical triangle in which it was since yesterday’s high. This could be an early indication that the price is now headed further up. However, a confirmation is needed which could come as the hourly candle close above the territory of the symmetrical triangle and then a successful retest of its resistance for support

The previous descending move has definitely ended as a five-wave correction however it is still unclear how the current rise would end and which type of structure it could form. There are three possible scenarios in play. The first being that we are seeing the starting five-wave impulse in which case its third sub-waves 1st wave has developed. The next one is slightly negative and considered the rise from the 26th as the ABC correction with more upside potential for the C wave. The third one is the most negative one and implies that the ABC correction to the upside already ended in which case we are now seeing the start of the next descending move with the symmetrical triangle being its 2nd sub-wave.

EOS/USD

From the 26th when the price of EOS was traded at $4.62 we have seen an increase of 34.17% measured to its highest point of the week made yesterday at $6.2. Like in the case of Litecoin a sideways action was seen and the price is now starting to move to the upside again, currently sitting slightly above $6.

LTC and EOS

We are now seeing a breakout from the symmetrical triangle which looks bullish as the price fell back to its resistance zone and found support there. However, a stronger confirmation would be seen in a form of surpassing yesterday’s high so before it does that the picture is still uncertain. If this is the start of the next impulsive move, the price would now be expected to increase more than it did in the first rise from the 26th which would bring the price above the $7.4 area.

But if this is only the start of the 3rd wave then the price would be expected to go much higher above the $7.4 area before the end of the increase in this move from the 26th.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.

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