LTC and EOS - Consolidation before a breakout

FXOpen

LTC/USD

From yesterday’s open when the price of Litecoin was being traded at $47.59 around its lowest point, we have seen an increase of around 4.4% as it came up to $49.58. At the moment the price is being traded slightly lower and is hovering at around $48.4 level.

LTC and EOS

On the hourly chart, you can see that from today’s high when the price made an attempt to break out above its significant horizontal resistance we have seen a descending move. As an attempt for a breakout ended as a failure the price has been pushed back to the downside again but has still managed to maintain a higher point then on its lowest yesterday.

From the 4th of September when the price fell significantly to the downside we have seen the formation of the recovery with an ascending trendline making its baseline. As the price fell and retested it supports yesterday we are seeing the formation of a symmetrical triangle whose resistance level has started developing on the 12th of September.

The price is now likely to continue moving around the current levels of around $48.4 as that is the medial point of the formed triangle, but as it approaches its apex point a breakout to both sides can be equally possible.

If the corrective move from the higher degree ended on the 4th of September the breakout would be expected to develop to the upside, setting up the price of Litecoin for a more significant recovery.

EOS/USD

The price of EOS has been increasing from yesterday’s low at $2.599 and made a recovery of over 6.8% as it came up to $2.778 at its highest point today. Currently, it is being traded at $2.7119 and is in a downward trajectory.

LTC and EOS

Looking at the hourly chart, you can see that it made a three-wave decrease since the 4th of September when it impulsively spiked to the upside buy after an interaction was made with the 0.618 Fibonacci level it started pulling back to the levels from which the increase was made.

This is why we have seen a retest of the $2.6 zone as it was the significant support area who which the price spiked impulsively, but unlike the previous time the price has increased now, it found resistance at the 0 Fib level and got rejected.

If we have seen the completion of the WXY correction on yesterday’s low followed by a breakout from the unclear descending triangle then the current descending move is to end on a higher low compared to yesterday’s one. But it should have ended on a higher high compared to the yesterday one but instead found resistance at the same level. This could indicate that the price is now headed for a lower low instead and would in that case mean that the prior correction hast ended.

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.