LTC and EOS - Breakout seen but increase soon expected

FXOpen

LTC/USD

From Sunday, when the price of Litecoin was sitting at its highest point at $64.84 measured to the lowest point the price has been today which is at $58.572 we have seen a decrease of 9.67%. The price is in a downward trajectory as a breakout has been made from the ascending triangle made from the 26th of October.

LTC and EOS - Breakout seen but increase soon expectedOn the hourly chart, you can see that the price of Litecoin has increased impulsively after an interaction with the $49.23 level in a five-wave manner. The triangle which was formed after could be considered corrective and is most likely the 2nd wave out of the starting upside move but it still unclear whether it would be another corrective one or an impulsive one.

Considering the rise we have seen from the 26th of October and the length of the corrective triangle I believe that the second one is more likely, but as a breakout from the triangle was made on the downside a sign of confirmation is needed. This could come in the form of price holding above the $57.558 significant level or above the lower one at around $52.4, but if the price continues moving below the second horizontal level in line it could indicate further lows for Litecoin.

EOS/USD

Similarly, as in the case of Litecoin, the price of EOS has also formed an ascending triangle after an impulsive increase and after reaching $3.61 on Sunday it started declining. The price decreased by 7.44% from there to the lowest point today at $3.34 around which the price is currently being traded and consequently made a breakout to the downside from the triangle.

LTC and EOS - Breakout seen but increase soon expectedAs the triangle’s wave structure looks corrective, its continuation would be expected but not below the $3.27 horizontal level. Inside the triangle, we have seen two corrective structures developing which is why the current one is considered the final one after which the uptrend should continue, but if the price continues moving below the $3.2 level we could see further depreciation before the expected uptrend continuation starts.

The lower horizontal support level on which the corrective depreciation could end is the resistance from the consolidative horizontal range at $3, but the one at $2.8 which served as support in the mentioned range is a more significant one and its retest before the uptrend continuation would look reasonable in the price progression.

In either way, after the downfall ends I will be expecting another increase from which we are to see if this is the start of the higher degree uptrend or not.

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

BTC/USD Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years BTC/USD Price Analysis: RSI Drops to Lowest Since March 2020 BTC/USD price analysis: The Price of Bitcoin Collapses by about 8% in One Day Market Analysis: XRP/USD Price Rolls Back to Important Support

Latest articles

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,

Commodities

Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use

Commodities

Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

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.