LTC and EOS - Breakout expected

FXOpen

LTC/USD

Since Monday’s open at $40.22 the price of Litecoin has been increasing and reached it’s highest point on the next day which was at $47.22 and is an increase of 17.51%. Yesterday after a minor retracement the price came back to retest the weekly high and found resistance there but is now again being traded around those levels.

LTC and EOS - Breakout expectedOn the hourly chart, you can see that the price action made an ascending triangle with its support level being steep is indicating strong buyers pressure, but with the sellers defending the horizontal level. A breakout to the upside could be expected in which case the next horizontal level at $49.23 would be of significance but a more different outlook can be seen if the sellers are able to withhold the pressure.

If the price continues increasing and manages to breakout above the Tuesday’s high further increase would be expected in a spiky manner as the buyers chasing would push the price. But if the price encounters strong resistance after the current interaction it could bring the price in a straight downfall to the $41.7 horizontal level.

It all depends on whether or not we have seen the completion of the 5th wave from the impulsive move on Tuesday or are we to see one more wave to the upside.

EOS/USD

The price of EOS has increased by 19.43% coming from it’s open on Monday at $2.344 to $2.8 made on Tuesday. Like in the case of Litecoin the price action started forming an ascending triangle as it’s support level is steeper then it’s resistance one. LTC and EOS - Breakout expected

Looking at the hourly chart of EOS you can see that it outlines another possibility which was presented in the case of Litecoin, namely that the 5th wave out of the current impulse wave ended. Instead of the previous descending triangle forming a five-wave correction it made a three-wave one which is why the increase from the 30th of March and it’s first higher low could be the first two waves out of the five-wave impulse.

This will shortly be validated by the breakout direction from the ascending triangle but in either way, after it’s completion I would be expecting another corrective downward sequence. If the increase from mid-March until today was an ABC to the upside the descending move which is to follow could develop in another downtrend resulting in lower lows then in March.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — 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

Market Analysis: Bitcoin Surpasses $40,000 Per Coin BTC/USD Analysis: New High for the Year Shows Bulls Are Indecisive Market Analysis: Results of Black Friday in Financial Markets BTC/USD Analysis: Bulls Preparing New Assault on 37,500 Level? BTC/USD Analysis: Bears Aggressively Defending 37,500 Level

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data

Yesterday, statistics from the United States on the dynamics of open vacancies from JOLTS were published. In October, their number decreased by 617.0k to 8.733 million, which turned out to be the lowest result since the beginning of

Forex Analysis

Will rate hikes end when 2023 ends?

Finally, after a seemingly endless period of interest rate increases by the US Federal Reserve over the past few years, there is some degree of inkling that the rate rises may come to an end at the end of this

Commodities

Market Analysis: WTI Oil Price Drops to Lowest Level Since July

As the chart shows, the price of a barrel of US crude oil dropped below 72.10 per barrel yesterday for the first time since July 2023. Fundamentally, this happened against the backdrop of: → Statistics showing that US oil exports

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. 60% 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.