LTC and EOS – further recovery expected before the downtrend continues

LTC and EOS – further recovery expected before the downtrend continues

Contents

LTC/USD

From Monday’s low at $88.63, the price of Litecoin has increased by 12.64% measured to its highest point today at $99.837.On the hourly chart below, you can see that the price of Litecoin found resistance at the minor horizontal level and has got rejected which is why the price has started decreasing and is currently being traded at $96.6.

The price of Litecoin has fallen to the significant horizontal support level at $86.48 where it found support after a 16.9% decline after the first interaction with the same horizontal resistance level with whom it has interacted today as well. This interaction was the first wave out of the expected recovery after a complex correction ended which is why the next one was a retest of the support level and now that the price has started moving to the upside again, we are likely seeing the development of the 3rd wave.

This 3rd wave is likely to end as a retest of the broken horizontal support level at $109.356 which is the lower level from the resistance zone of a higher degree and is expected to end as another rejection. As we’ve seen the end of the complex correction which is a three-wave one on a higher degree this current upside structure is considered to be the 2nd wave out of an even higher degree move to the downside and is why I would be expecting further downside for the price of Litecoin in the upcoming period.

In either way, the price of Litecoin is expected to go above today’s high so depending on the momentum and strength of the expected upward move we are to reevaluate the possibility of another increase as we could be seeing the start of another five-wave move after the complex correction ended.

EOS/USD

The price of EOS has been moving sideways since Friday 19th of July when it managed to go back up above $4.167 horizontal support level around which the price is currently being traded.

On the hourly chart, you can see that the price of EOS has been in a downward trajectory since its yearly high to the interrupted ascending trendline where it found support at around $3.6. This was most likely a three-wave WXY correction which is why the price recovery has started after but as we haven’t seen impulsiveness in the upward trajectory but instead signs of a struggle between the ascending levels it is more likely another corrective increase in play before the downward trajectory continues.

This corrective increase could bring the price of EOS to $5.58 which would be a retest of the broken horizontal support level before another downturn starts and is likely to end as a three-wave structure. With the price moving sideways I think we’ve seen the completion of the 2nd wave which is why soon another increase would be expected considering weak momentum seen I don’t believe that the increase would be that significant.

More likely we are to see the interaction with the $5.56 level ending as rejection after which the price is to continue moving to the downside to some of the significant horizontal support levels out of which the most relevant one would be at the 0 Fib line at $1.6 but the decrease could stop slightly above as there are multiple support points in between. If this plays out like projected it would most likely mean that we have seen the WXY correction prolonged by two more waves X and Z and after its completion, I would be expecting a significant recovery.

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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