From Monday’s open when the price of Litecoin was sitting at $56.62, we have seen a decrease of 11.84% as the price fell to $52.561 at its lowest point today around which it is currently being traded. In the last couple of hours, we have seen a decrease of 4.8% with the price still being in a downward trajectory.
On the hourly chart, you can see that the price continued moving below the $57.55 horizontal support level after a breakout from the ascending triangle. The level was first retested and offered to serve as support but after a corrective increase, a move below it occurred. The price is currently retesting the lower horizontal support level and judging by the wick on the buyer’s side we can see it holding at least for now.
Previous to today’s decrease we have seen a contracting triangle which is usually seen in the 4th wave if in impulse or in the B wave if in a correction, so the current decline should be the ending move out of the breakout downtrend. This is why I would be expecting further support establishment with some consolidative price action before the start of the recovery.
The expected recovery could be the 3rd wave out of the next impulse to the upside or could be C wave from the ABC correction but in either way a five-wave move should develop above the previous high at $66.
At the start of the week, the price of EOS was sitting at $3.425 at its open. From there we have seen a decrease of 13,45% measured to its lowest point today at $2.964 around which it is currently being traded.
Looking at the hourly chart, you can see a similar pattern developing like in the case of Litecoin as a breakout from the ascending triangle has been made. Unlike in the case of Litecoin, the price of EOS hasn’t reached its lower horizontal support level but the resistance point of the horizontal range prior to the spike to the downside on the 24th of October. This is why we could see further depreciation to the lower horizontal level at $2.86
This could still be an ABC correction after the five-wave impulse wave to the upside after which another increase would be seen. But we could be seeing another corrective increase after which would end this move on the third wave and lead the price of EOS for a lower low.
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 making your money go further 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.