LTC and EOS – corrective retracement or downtrend continuation?

LTC and EOS – corrective retracement or downtrend continuation?

Contents

LTC/USD

From Sunday when the price of Litecoin was sitting at $49.551 we have seen a decrease of 11.23% measured to its lowest point today at $43.898. The price is currently being traded at $44.914 and is retesting the horizontal support for resistance as you can see from the hourly chart below. On the hourly chart, you can see that the price of Litecoin has retraced back almost to its prior low at $43.6  but hasn’t made an interaction with the 1.272 Fibonacci level. Instead after yesterday’s low the price spiked to the upside back to the 1 Fib level before again falling back down to the same level.

This price movement indicates that we are most likely seeing a corrective move to the downside after a breakout from the ascending triangle. The breakout momentum was strong which is why we could see the price continuing to form lower lows.

As the price is currently retesting the $44.952 horizontal level we are soon going to see if the resistance is there and if the interaction ends as a rejection further lows would looks highly likely. If the price however manages to go above the horizontal level and stays there it could be an early indication that the recovery has started with the ascending triangle being its first wave.

EOS/USD

The price of EOS has also broken out from its ascending range but fell only by 7.36% from its highest point on Sunday at $2.81 to 2.61. Like in the case of Litecoin the price spiked to the upside yesterday coming to retest the 0.786 resistance level but shortly fell back to the levels from which the increase was made. Looking at the hourly chart, we can see that the price of EOS formed an ascending channel in which the price moved in a five-wave manner. This could be interpreted as a leading diagonal especially considering that this occurred after an interaction with the 1.272 Fibonacci level and the decline from the breakout momentum out of the ascending triangle.

The price came down to the 1 Fibonacci level and found support there so if the increase continues without going below it, it could indicate further price appreciation. But if  the price continues moving to the downside below the $2.62 level a retest of the 1.272 Fib level would look more likely with potential further lower lows.

In that case the ascending channel would have been corrective in nature and was not a leading diagonal which will be validated by the price depreciation above $2.36

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Latest posts by Nikola Lazić (see all)
with No Comments 985

Share:

Scroll Up