LTC and EOS moving sideways but for how long?

LTC and EOS moving sideways but for how long?

Contents

LTC/USD

From Monday’s open at $54.64 the price of Litecoin has increased by 5.34% at its highest point of the week made on Tuesday when the price retested the $57.558 level which was broken on the way down. Currently, the price is being traded slightly lower at around $55.72 as it was mostly been moving sideways since the start of the week.

Looking at the hourly chart, you can see that the price of Litecoin most likely ended its five-wave move to the downside on the $52.427 horizontal level which is a major pivot level and was considered as the median line of the support zone with the $57.558 being its upper level. As the price came down inside this support range we are seeing the price retesting the levels before the next decisive move.

The next move that is likely to play out could be the start of a recovery as the price fell down to the significant horizontal level and found support there but since the bearish momentum was strong this could be interpreted as consolidation before the further downfall. If the price manages to increase above the $57.55 level and stays above it, the likelihood of the recovery commencing would increase but if the price gets rejected at the current retest and starts moving below the $52.42 level the possibility of the downtrend continuation would look more likely.

EOS/USD

The price of EOS has increased from Monday’s low at $2.7336 to $3.1335 on the next day which was an increase of 14.73% but from there decreased again and is currently being traded at $2.9584.

On the hourly chart, you can see that the price fell steeply with strong bearish momentum prior to the formation of this ascending triangle and spiked to $2.4 at its lowest point but since then managed to recover above the significant horizontal level at $2.86 which serves as support. This recovery might continue to the upper horizontal level at $3.2787 as a retest of resistance as the level was pierced on the way down.

The price is currently retesting the $2.86 level for support as well as the ascending support level from the still unconfirmed triangle which is why if the price finds support there we are to see further increase. But if the price falls below the $2.86 level it would mean that a minor breakout has been made with the price likely continuing its downside trajectory. If we have seen the completion of the WXY to the upside from the 16th of July till the 17th of September the downside move that played out could be the first wave out of the next downtrend move with the ascending triangle being its second which means that a third would start developing soon to the downside.

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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