LTC and EOS – Breakout seen from the triangle but not from the ascending channel

LTC and EOS – Breakout seen from the triangle but not from the ascending channel

LTC/USD

The price of Litecoin has continued increasing since the start of November and has broken out from the symmetrical triangle on the upside. An increase of 11.85% was seen, measured to the highest point made on today’s open which is at $64.32. From there another downturn has started with the price currently being traded at around $61.5 which is a decrease of 4.43%.

Looking at the hourly chart, you can see that the price of Litecoin undergone a corrective triangle in which we have seen three waves developing an ABC correction. As the price made this triangle after a five-wave move to the upside which looks impulsive in nature the current upside move is most likely its continuation and is likely to develop also in a five-wave manner.

This will be confirmed by the depth of the current downside move which is considered the 4th wave out of the impulsive move the upside which cannot enter the territory of the wave 2 which is at $59.34.

If the price continues moving below the mentioned level the count would be invalidated. In this case, the increase would have ended as a three-wave increase which would be considered corrective in nature and would indicate further downside potential for the price of Litecoin in the upcoming period.

EOS/USD

From the 1st of November when the price of EOS was sitting at around $3.22 we have seen an increase of 13.85% measured to the highest point the price has been yesterday which is at $3.67. Currently, the price is being traded at $3.47 and is still in a downward trajectory, from which similarly like in the case of Litecoin, we are to see if this increase is the start of the next impulsive move to the upside.

On the hourly chart, we can see that a breakout was made from the triangle in which the price was correcting until the 1st of November, but we haven’t seen a breakout from the ascending channel. Instead, the price interacted with the level and found strong resistance there as the price started an aggressive decline after. This means that we could be seeing the correction’s prolongation which also applies to Litecoin.

The 1st wave’s ending point which is at $3.399 will serve as a pivot point, as if the price continues moving below it, it would invalidate the presumed 12345 count and would point out that increase ended as a three-wave move with another structure to the downside developing before we can see the 3rd wave of the higher degree starting.

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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