LTC and EOS – Further increase expected

LTC and EOS – Further increase expected

Contents

LTC/USD

From Monday’s open at $70.7 the price of Litecoin has been moving sideways and retesting the horizontal support level at $69 along the way around which the price is currently being traded again. Last week the price has been trading below the horizontal level until Saturday when a breakout above it has been seen. As the price managed to stay above the level and made a higher high it looks like the support has been established but another confirmation will soon be seen.

On the hourly chart, you can see that from the start of September the price has been rising after a significant downfall which pushed the price below the significant horizontal level. Price action has made a rising wedge pattern which could be interpreted as another corrective pattern before further downtrend continuation especially considering that the price hasn’t entered the territory above the upper support level at $72.4 from which the impulsive downfall was made on the 28th of August.

This is why I would now be expecting another rise from the current level to the $72.4 horizontal one as a retest of a resistance point which would complete the wedge pattern in a corrective five-wave manner. But if the price manages to move above the level and impulsively breaks out from the rising wedge it could indicate that a significant recovery could be seen. The recovery could be starting soon as we’ve seen a breakout last Saturday on the 7th of September from the descending trendline which dates from the yearly high on 22nd of June.

Either we are going to see a retest of the $72.4 level where the price is getting rejected and will in that case move for another lower low, potentially to $57.55 horizontal level or the price breaks the resistance and enters the upper range in which case the recovery could have begun. This is why the $72.4 level would serve as a pivot point.

EOS/USD

The price of EOS has been recovering from Saturday when it came up from $3.19 at its lowest to $3.666 at its highest which was an increase of 14.6%. The price continued increasing until Monday and reached $3.966 at its highest spike when a retracement started. Currently, the price is being traded at $3.697 which is slightly higher from yesterday’s low which could indicate another uptrend continuation, but the price might continue its retracement further. Looking at the hourly chart we can see that on Saturday the price broke out from its significant resistance which was the upper level of the descending channel in which the price has been decreasing from the 27th of July. If we are seeing the start of the recovery the price action should develop in a five-wave manner which is why another increase might occur soon. If the price increase continues the likely ending point for the 5th wave could be around the intersection of the horizontal resistance level at $4.16 and the ascending interrupted trendline to $4.3

However, the price could have ended it three-wave corrective increase which would be the 3rd wave out of the upward correction from the ending point of the Y wave of the previous three-wave WXY correction from the yearly high. If the price decreases below $3.44 which would mean that it has entered the territory of the 2nd wave.

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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