LTC/USD and EOS/USD: the prices crash as the corrective increase ended

LTC/USD and EOS/USD: the prices crash as the corrective increase ended

Contents

LTC/USD

The price of Litecoin has decreased by 17% from yesterday’s high at $120 measured to today’s low at $99.65. The price spiked further down to $94.4 but the hourly candle closed above the minor horizontal level.

On the hourly chart, you can see that the price of Litecoin is struggling to establish support as a breakout to the downside occurred from some of the significant horizontal support levels out of which the most significant one is at around $109.35. The price retested the horizontal level from the lower side after it was pushed below it, founding resistance again and causing another downfall to the next minor horizontal level which is currently being tested for support.

The price of Litecoin moved in an impulsive five-wave manner like expected as a breakout from the cup and handle formation started yesterday. This decrease is a continuation of the downfall seen from 29th of June till the 2nd of July after which an ascending ABC correction developed in conjunction with the cup and handle. As the cup and handle is a continuation pattern and the price started moving to the downside we have likely seen the third wave out of the presumed Z wave from the complex correction count which started after the completion of the five-wave impulse on the 12th of June when the price of Litecoin reached $144.

This would be the ending wave of the mentioned complex correction which is why after another sell-off we could see the uptrend continuing but if we’ve seen the end of the five-wave impulse of the higher degree on the 12th of June this could only be the first wave out of the higher degree correction.

EOS/USD

From yesterday’s high at $5.9224 the price of EOS has decreased by 23.38% as it fell down to $4.53 and even spiked further down to $4.32 at its lowest point. The price is currently being traded at $4.71 as it found support at the significant horizontal support level and is attempting to make a recovery.

On the hourly chart, you can see that the price of EOS fell to the projected level in a five-wave manner but hasn’t made an expected recovery. The price struggled to move back up above the 0 Fib level and finally as the seller’s pressure has served as resistance there and the buyers look like they gave up with another sell-off started a breakout below $5.8 level.

This move to the downside could have been the completion of the Y wave from the correctional count which started on the 1st of June but it could only be its first wave with the price eventually after a minor recovery, continuing to move to the downside again below the currently found support at the significant support area. If this is to occur we could see a retest of some of the broken support levels out of which the most optimal one would be at $5.58 but the recovery might lead to another sell-off if the correction gets prolonged.

The price entered the territory of the 2nd wave (x) from 28th till 30th of June which is why this decrease is considered corrective and not impulsive. As this is the primary count we could see another run-up after its completion but if the price of EOS ended its 5th wave of the Minor count at the yearly high on the 1st of June we could be seeing the first correctional structure as the first sub-wave of the higher degree downward move in which case the price of EOS is set to go significantly lower.

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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