LTC/USD and EOS/USD more downside expected

LTC/USD

The price of Litecoin has fallen by 16.34% from yesterday’s high at $51.38 and is currently being traded at $42.8.

Looking at the hourly chart, we can see that the price fell through the descending channels resistance with a massive momentum as the majority of the decline happened in only 8 hours. Currently, the price is below the S2 support line at $44.621. I’ve labeled as a support zone forming a cluster around those levels. The wicks from the downside are indicating that some support has been found but I believe that it will hold only temporary.

As you can see, I have labeled some fractals. One being the top formation is labeled with a rectangle, and the other one is my project scenario based on the prior scenario. As I am expecting that the price falls further, at least to the descending channel’s support line, this projection looks very likely. Last time when the price behaved like this, we saw more downfall but with more consolidations in between. I believe the same will happen now as well.

Zooming out on to the daily chart, you can see that the projected ghost bar pattern lands on the next significant horizontal support level at $38.21.

As the price is below S2 and has managed to stay there for some time, we can say that a breakout from the support zone occurred. As you can see prior to this downfall, the price managed to stay above the median line of the support zone for the most part. Now, when the price is below its last accountable reaching level and considering the powerful momentum behind the move, I think that it’s very likely that the price may fall to $38.21 level where it will find support.

EOS/USD

The price of EOS has fallen by 14.89% from yesterday’s high at $5.348 and is currently being traded at $4.5412.

Looking at the hourly chart, we can see that the price has fallen as the minor WXYXZ ended on the significant horizontal level at $5.84, which served as resistance to the next horizontal level, which serves as support at $4.589. Now, when the price has fallen steeply and aggressively we are likely going to see some consolidation around the support level as the price has already fallen below. It was previously forming a cluster putting pressure on the level.

Zooming out to the daily chart, you can see my Elliott Wave labelings. They point out that the price is heading down much further. This symmetrical triangle seen on the hourly chart was only a bearish pennant in which the correction in the opposite direction occurred. The price has broken out from that structure now and started another potentially impulsive move to the downside.

If the EOS/USD pair breaks the current support level (and the price has already been below it on the last Z wave and is currently below it), the next strong enough horizontal support level is at 3.27$.

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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