LTC and EOS stuck in a horizontal range

LTC and EOS stuck in a horizontal range

Contents

LTC/USD

From last Monday when the price of Litecoin was sitting at $87.72 at its lowest point we have seen an increase of 16.79% as the price came up to $102.45 on this week’s Monday. The price spiked even further to the upside to 107.2 but since it attempted to exceed the prior high and entered the seller’s territory it started decreasing again. Currently, the price is being traded at $90.8 as a retracement occurred.

Looking at the hourly chart, you can see that the price is stuck in horizontal range and has been moving sideways since the first attempt for recovery has been made. The price came down below the horizontal support zone at $86.4 but then spiked to $104 in one go. This increase has been made in a five-wave manner which is why it could have been the first wave out of the next impulse wave to the upside, but since the price started moving sideways after a minor retracement this isn’t much likely.

More likely we are seeing another corrective range after a complex correction has ended which could either be a consolidation before a proper recovery or before the downfall continues. This is why from the direction of a breakout from the horizontal range we are most likely going to see an indication of the next move’s direction but for now, a breakout to the downside looks more likely.

EOS/USD

Last Monday the price of EOS was $4.133 end even spiked further to the downside reaching $3.87 at its lowest point but since then has recovered to $4.58 on Monday this week. From Monday the price started decreasing again and came down by 10% on the next day but is currently being traded at $4.187 as it’s retesting its horizontal support level.

On the hourly chart, you can see that the price is stuck in a horizontal range much like in the case of Litecoin and is moving between the $4.58 and the $4.16. This range has been formed after the price ended its downfall when it came down to $3.6 coming from slightly above $6 which was a decrease of 40.19% which could be interpreted as a consolidative range. The prior downfall was a higher degree correction from the yearly high at $8.63.

As the price decreased in the previous period we might be seeing another attempt of recovery with the horizontal range being the 2nd wave out of the starting five-wave move to the upside, but since it took some time for the price to form the mentioned range it doesn’t look much likely. More likely we are seeing another corrective range after another downfall.

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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