LTC and EOS – Exponential growth coming to an end?

LTC and EOS – Exponential growth coming to an end?

Contents

LTC/USD

From the 3rd of January when the price of Litecoin was sitting at $38.9 we have seen an increase of over 52% as it came to $59.34 at its highest point yesterday. Currently, the price is being traded slightly lower at around $55.6 as the price started moving to the downside again.

Looking at the hourly chart, you can see that the price of Litecoin started increasing exponentially after an interaction with the $49.23 horizontal level which formed another steeper ascending trendline. As we have most likely seen the completion of the Y wave from the WXY correction of a higher degree the increase was seen is the start of a higher degree recovery to the upside.

From the 3rd of January when we saw a first retracement ending on a higher low so it could have been the 1st wave out of the presumed five-wave impulse to the upside. If this is true then we are most likely seeing the development of its 3rs wave but considering that the price increase from the 1.272 Fibonacci level until the 0.786 was smaller in size compared to the previous one this is yet to be validated.

Another possibility could be that we are seeing the second wave X as the correction of a higher degree could have gotten prolonged in which case the currently seen rise would be sub-divided into three waves.

EOS/USD

On the EOS chart, you can see a similar picture as in the case of Litecoin, as this cryptocurrency also experienced an exponential increase from the start of the year. From the 3rd of January when the price was sitting at $2.44 we have seen an increase of 65.82% measured to the highest point the price has been which is at around $4 made Tuesday this week.

On the hourly chart, you can see that the price is currently being traded at $3.6 and is retesting the 0 Fib level for support which is the significant ending point of the upper range and serves as a pivot point. As the price spiked inside the territory of the upper range and managed to stay above the 0 Fibonacci line it could mean that further increase is highly probable but if the price falls below the mentioned level further decrease would look more likely.

If the price is to continue increasing from here the next significant level would be at around $4.16 but if it continues decreasing from here I could fall back below $3 mark again.

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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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