LTC and EOS - Descending Triangles Near Completion

FXOpen

LTC/USD

From the 7th of November when the price of Litecoin has reached nearly $65 we have seen a decrease of 12% measured to its lowest point at $57.14 made on Tuesday. Since then the price has been increasing again but found failed to exceed the $60 level on three separate occasions. Now it is being traded at $58.419 after a third rejection at the $60 area.

LTC and EOS

On the hourly chart, we can see that from last Saturday when the price made its previous high we have seen the formation of the descending triangle whos high interacted with the 1 Fib level which was a significant range from back on the 2nd of August this year. On the 16th of August, the price proceeded to increase to the next Fib level at $68.52.

As we have seen a recovery from Tuesday with the price making attempts to break out from the descending triangle and finding support on the 0.5 Fib level, making a higher low, it could indicate that the next impulsive move has started developing. This would be the 5th wave of a Minuette count as the ABC correction to the downside developed.

The price is currently testing the descending triangle’s resistance so we are yet to see if it finds support there, but if it does that could be an early sign that the uptrend is continuing to develop.

EOS/USD

The price of EOS has been showing a similar pattern as it made a descending triangle from the 7th of November when it reached $2.61 at its highest and fell down to $2.459. Unlike in the case of Litecoin, the price of EOS hasn’t made a breakout from the descending triangle and is instead being traded around its support level at the moment.

LTC and EOS

Looking at the hourly chart, you can see that the price broke out from the previous descending range in which a five-wave decrease was made. After the spike to the downside was made below the $2.25 we have seen the first minor move with the higher low at $2.3. Now we have seen another descending range after a runup which could be another significant consolidation range before the further increase is made.

This is why after the completion of the current descending triangle further upside would be expected to develop in which case it would be the 5th wave from the next five-wave impulse wave. The target price of this 5th wave could be somewhere around the 0 Fib level at $2.775 for a retest of resistance.

 

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