LTC/USD and EOS/USD - more downside expected

FXOpen

LTC/USD

At the moment of our last week’s analysis on Thursday, December 6th, the price of Litecoin was around $25.8. From there the price went down to around $23.2 and even spiked further down but the hourly candle has closed above leaving a wick on the hourly chart as you can see below. From there the price went to recover and has increased to $27 but fell again to $23.7.

LTC/USD and EOS/USD - more downside expected

This continued and the price action has formed a triangle, which looks like a bearish pennant considering the price action context. Its resistance line is the support from the previous structure and it was well respected in the past both on the previous structure as support and now as resistance.

Currently, the price is in a downward trajectory as it was rejected at around the 50-hour SMMA and judging by the price action we are going to see another interaction with the triangles support line again.

This interaction may lead to a breakout from the downside in which case I would be looking at $21.98 for the target as this is the next horizontal support level in line that is significant and strong enough to withhold the sell-off momentum.

If the price goes up, however, and we see a breakout from the upside, I wouldn’t expect the price to go further than the resistance at $27.75 where the previous high level is, because this current triangle structure is a correction after a down move so a trend continuation is expected.

This means that in either case I would expect to see the price significantly lower but this might not happen in a straight line.

EOS/USD

From last Thursday, when the price of EOS was $2.2642 at the open, to the current levels of $1.9959 the crypto has decreased in price by 11%.

LTC/USD and EOS/USD - more downside expected

Looking at the hourly chart, you can see that the price has hit its lowest on Friday when the price was $1.5717 at its lowest point. Since then the price action has created an ascending channel, which led the price to recovery to about 33% as it came to $2.1158 level, which is the prior range support. The price got rejected there. Hence, it went in a downward trajectory and came down to establish a higher low at $1.8384.

From there the price went on to attempt another breakout from the upside. However it was stopped out again at the horizontal resistance level and is currently below the second less significant horizontal level and it is getting rejected there as well by the looks of the current candles.

For these reasons, we should expect more downside for the price of EOS and the first potential target would be at the prior low level at around $1.6. But considering the momentum behind the sell-off this support level the price might hold now and we see yearly lows for the price of EOS.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level Today Is an Ethereum Update. ETH/USD Is Above $4,000 After Updating the Historical High, the Price of Bitcoin Collapsed by 14% BTC/USD Price Exceeds $60,000 Per Coin Bitcoin Price Risks Not Staying above $50k

Latest articles

Forex Analysis

US Dollar Shows Record Weekly Gain Since Mid-January

The US dollar strengthened on Friday ahead of a series of highly anticipated central bank meetings next week, including the US Federal Reserve. The dollar rose 1.3% for the week, its biggest gain since mid-January, after a mixed batch

Shares

Tesla Stock Hits a Low Point as Musk Sues Openai - Is This Year a Total Write-Off?

Occasionally during the course of industrial progress, there is a maverick; a voice that is known for continual disruption and maintaining a high-profile position whilst engaging in such disruption. The figure of this decade is Elon Musk, a self-starter whose

Trader’s Tools

Analytical Forecasts: How Much AAPL Stock May Cost in the Next 10 Years

In today’s tech landscape, Apple Inc. has consistently been at the forefront, shaping the future with its innovative products and services. As investors and enthusiasts alike ponder the future value of Apple stock, particularly looking ahead to the next

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.