LTC and EOS – Lower Low Expected

LTC and EOS – Lower Low Expected

LTC/USD

On Monday’s open the price of Litecoin was sitting at around $80 which was the exact ending point of the recovery to the upside as from there the price decreased in an impulsive manner to $57.58 at it’s lowest point today which is a 28.1% depreciation.

As you can see from looking at the hourly chart, Monday’s open was at the presumed B wave from the ABC correction that started after an interaction with the $84.2 horizontal level on the 13th of February. We have seen the completion of the five-wave impulse to the upside which is now we are seeing the three-wave correction to the downside.

Considering the last wave we have most likely seen the completion of the 3rd wave from the lower degree count and now we are seeing the development of the 4th which can continue moving the price in a sideways movement before another retest of the 0.382 Fibonacci level with whom an interaction has been made on today’s low. As this would be the ending wave of the lower degree count it could mean that the C wave from a higher degree would end as well.

If we have seen a three-wave ABC correction to the downside, after further support establishment around $57.1 another recovery of a higher degree could be expected.

EOS/USD

The price of EOS has also been decreasing impulsively from Mondays open at $4.41 which is it’s highest point of the week at $3.42, made today. This decrease of 22.44% has starting to look like completed as a minor recovery has been made with the price currently being traded at $3.57

On the hourly chart, you can see that the price of EOS fell below the significant starting Fibonacci level and tested the 0.236 one with a quick spike. As it looks like the buying was activated by this movement a minor recovery of around 6% has been made with the price attempting to find support on the 0 Fib level from the upper side.

If the price finds support here it could indicate that we have seen the end of the decrease and the C wave of the Zigzag correction to the downside, but this might be the 4th wave out of the lower degree count similarly like in the case of Litecoin. This is why the 0 Fib level interaction can provide an early indication of further price progression.

But if the price gets rejected at the current levels we have likely to see another lower low, potentially to the $3.27 level which is the projected length of the wave A.

 

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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