LTC and EOS - Breakout momentum still strong, but recovery expected soon

FXOpen

LTC/USD

From Monday’s open when the price of Litecoin was sitting at $56.62, we have seen a decrease of 11.84% as the price fell to $52.561 at its lowest point today around which it is currently being traded. In the last couple of hours, we have seen a decrease of 4.8% with the price still being in a downward trajectory.

LTC and EOS - Breakout momentum still strong, but recovery expected soonOn the hourly chart, you can see that the price continued moving below the $57.55 horizontal support level after a breakout from the ascending triangle. The level was first retested and offered to serve as support but after a corrective increase, a move below it occurred. The price is currently retesting the lower horizontal support level and judging by the wick on the buyer’s side we can see it holding at least for now.

Previous to today’s decrease we have seen a contracting triangle which is usually seen in the 4th wave if in impulse or in the B wave if in a correction, so the current decline should be the ending move out of the breakout downtrend. This is why I would be expecting further support establishment with some consolidative price action before the start of the recovery.

The expected recovery could be the 3rd wave out of the next impulse to the upside or could be C wave from the ABC correction but in either way a five-wave move should develop above the previous high at $66.

EOS/USD

At the start of the week, the price of EOS was sitting at $3.425 at its open. From there we have seen a decrease of 13,45% measured to its lowest point today at $2.964 around which it is currently being traded.

LTC and EOS - Breakout momentum still strong, but recovery expected soon

Looking at the hourly chart, you can see a similar pattern developing like in the case of Litecoin as a breakout from the ascending triangle has been made. Unlike in the case of Litecoin, the price of EOS hasn’t reached its lower horizontal support level but the resistance point of the horizontal range prior to the spike to the downside on the 24th of October. This is why we could see further depreciation to the lower horizontal level at $2.86

This could still be an ABC correction after the five-wave impulse wave to the upside after which another increase would be seen. But we could be seeing another corrective increase after which would end this move on the third wave and lead the price of EOS for a lower low.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level Today Is an Ethereum Update. ETH/USD Is Above $4,000 After Updating the Historical High, the Price of Bitcoin Collapsed by 14% BTC/USD Price Exceeds $60,000 Per Coin Bitcoin Price Risks Not Staying above $50k

Latest articles

Trader’s Tools

What Are the Analytical Forecasts for Natural Gas Prices From 2024 to 2029?

Exploring the dynamics of the natural gas market reveals intricate patterns shaped by a range of factors. This FXOpen article delves into analytical natural gas price predictions for 2024 and the next 5 years, offering insights into potential trends and

Forex Analysis

US Dollar Shows Record Weekly Gain Since Mid-January

The US dollar strengthened on Friday ahead of a series of highly anticipated central bank meetings next week, including the US Federal Reserve. The dollar rose 1.3% for the week, its biggest gain since mid-January, after a mixed batch

Shares

Tesla Stock Hits a Low Point as Musk Sues Openai - Is This Year a Total Write-Off?

Occasionally during the course of industrial progress, there is a maverick; a voice that is known for continual disruption and maintaining a high-profile position whilst engaging in such disruption. The figure of this decade is Elon Musk, a self-starter whose

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.