LTC and EOS – Recovery seen but it could be still a corrective one

LTC and EOS – Recovery seen but it could be still a corrective one

LTC/USD

From last Friday when the price of Litecoin has been sitting around $62.332 at its lowest point we have seen an increase of 13.61% until Tuesday when it came up to $70.8 at its highest point but is currently sitting at $67 as a minor retracement occurred.

Looking at the hourly chart, you can see that the price attempted to make a recovery above the $69 horizontal level but the attempt ended as a fakeout with the price currently retesting its support point made by the intersection of multiple trendlines.  After the price continued moving below the $69 level it hasn’t continued doing so for much longer before recovery started which could indicate that we’ve seen the ending wave from the five-wave move to the downside that started on the 22nd of June at the yearly high.

If we’ve seen the ending wave from the five-wave move to the downside the recovery which started could lead to a significant one as the price of Litecoin decreased by over 56% from its yearly high. But if the five-wave decrease hasn’t ended this recovery could only be a minor one before the downtrend continuation. This is why the $69 level is serving as a pivot point above which it is considered as the seller’s territory so if the price manages to move back above it and stays there the likelihood of a significant recovery would be higher.

If however the price gets rejected here and starts moving impulsively to the downside again the likelihood of the downside movement continuing would be higher.

EOS/USD

From last Thursday when the price of EOS was sitting at around $3 at its lowest point we’ve seen a recovery of 12.3% until Tuesday this week when the price came up $3.45 at its highest. The price is currently being traded at around $3.27 as a minor retracement occurred to the horizontal support level which was broken on the way down. On the hourly chart, you can see that the price has managed to move back up above the significant horizontal level and is now retesting it for support which is why if the support is shown as present the recovery might continue. From the 25th of July, we’ve seen the price moving in a descending channel inside which this price is still hovering. Until we see a breakout to the upside from the channel’s resistance level we cannot say that a significant recovery began, but this might change soon if the price finds support at present levels.

If the price doesn’t find support and starts moving to the downside again the next potential target for the expected decrease would be the lower horizontal support level at $2.86.

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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