LTC and EOS - Ascending channels could mean further downside

LTC/USD

From Monday’s low at $53.83 the price of Litecoin has increased by 11.3% measured to the highest point the price has been yesterday which is at $59.939. Currently the price is being traded slightly lower at $57.9 as the price reached started decreasing from yesterday’s high.

On the hourly chart, you can see that the price has decreased as a result of the resistance rejection which was made yesterday with the ascending channel’s upper level in which the price has been consolidating since the 27th of September. Looking at the wave structure from the 27th’s low we have seen 3 three-wave corrections playing out which could be a WXY correction of a higher degree in which case yesterday’s interaction would be its ending wave.

If this is true, then we are now going to see the further downside as the Y wave developed and retested again the resistance of the range in which it developed and this rejection could set off another downfall below the $52.4 horizontal support. In that case, the next level which serves as support would be at $49.23 but the price could continue decreasing below it if the momentum is strong.

Another possibility would be that the price of Litecoin would continue its recovery from here and starts increasing above the ascending channel’s resistance in which case it would most likely mean that the Y wave hasn’t developed fully, but in either way, I would be expecting further downside from there.

EOS/USD

Similarly like in the case of Litecoin, the price of EOS has also developed an ascending channel from the 27th of September. We have seen an increase of 14.58% from Monday’s low at $2.89 till yesterday’s high at $3.3124 but since yesterday the price started decreasing again and is currently being traded around $3.1

The price came up for interaction with the ascending channels resistance and the horizontal level at $3.27 which now serves as resistance for a retest and as it got rejected we have seen downside movement to the prior high vicinity which is currently being tested for support. The price is likely headed a bit further to the downside to the descending channels support level or back to the $2.86 horizontal level if the ascending support doesn’t hold and like in the case of Litecoin I am counting this ascending structure as an WXY correction with a possible prolongation playing out.

This will soon be validated by the mentioned significant level interaction so I would be closely monitoring what happens at around $3 area as this is where the next significant bounce should be if the price is to continued moving to the upside.