LTC and EOS – Breakout to the downside

LTC and EOS – Breakout to the downside

Contents

LTC/USD

On Monday, the price of Litecoin has been traded at $90.153 at its highest point but soon started decreasing to its significant horizontal support level at $84. As a breakout occurred from the horizontal support zone the price has fallen to $72.92 and spiked even further to $71.13 at its lowest point today which is a decrease of 21% since the start of the week. On the hourly chart, you can see that the price broke out from the horizontal range in which it was consolidating from 17th of July. As you can see the price is currently slightly lower than it was on after it fell below the horizontal zone previously which indicates further downside potential as a lower low has been made. This downtrend is likely a continuation of the higher degree downside move which started on 12 of June when the price of Litecoin reached $144 at its highest point.

As we’ve seen a breakout to the downside the next horizontal level which could serve as support would be at around $67.9 but the level is only a minor one which is why I don’t believe that we are going to see it holding the downward momentum. More likely this support point is to cause a temporary reversal which would be set to push the price back up for a retest of the broken significant horizontal zone at $84 before the downside movement continues below it to the next significant support zone which is at around $54-52 area.

EOS/USD

From Monday’s high at $4.239 the price of EOS has decreased by 22.12% as it fell to $3.3 at its lowest spike today. The price is currently being traded at around $3.59 as it started to recover but strong seller’s presence has been seen which is why the momentum is likely to continue.

Looking at the hourly chart, you can see that the price broke out from the horizontal range in which it was consolidating from 17th of July but unlike in the case of Litecoin, it hasn’t exceeded the prior low. The hourly candles did close below but the lowest spike has come even slightly higher then the previous one and hasn’t gone below $3.27 horizontal level. Even though the price hasn’t made a lower low we could say that we’ve seen a breakout to the downside as the significant ascending trendline has been broken which is why it is highly likely that the downfall would continue.

The price found some support but this is going to be a temporary one which could set the price for a minor recovery for a retest of the broken support levels for resistance after which another downturn would be seen.

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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