LTC and EOS - Has The Correction Ended?

FXOpen

LTC/USD

From Monday’s high at $47.53 the price of Litecoin has decreased by 9.73% as it came down to $42.916 at its lowest point today. Today’s low was the second retest of the level on which the price found support on Monday and from where recovery was seen to the $45.26 area.  But as resistance was present at those levels another descending move was seen.

LTC and EOS

The price of Litecoin found support there once again and has been increasing since but is still struggling to keep up the upward momentum and form a higher high. As the price broke out to the downside below the $45.3 area where the upper range found support, a test of the lower significant horizontal level was made but only on a quick spike as the price snapped back above the $43 level on the hourly chart.

This is why another decrease could be seen either as a retest of the $41.7 significant level or a straight pierce through the level on the next descending move. This would be a downtrend continuation from the previous breakout momentum that was made as an interaction with the $49.1 level ended as a rejection and the price going below the support of the symmetrical triangle.

If the price continues moving to the downside from the current level a breakout below $41 area would be expected, but if the price founds support there it could indicate that the descending movement is over.

EOS/USD

The price of EOS has been increasing from yesterday and came up by 4.8% from $2.3951 to just slightly below $2.5. This minor bullish momentum has pushed the price back to retest the horizontal level from which it broke out to the downside yesterday. Now we are to see if the price finds resistance there or will it go back above it into the upper range.

LTC and EOS

If the price of EOS continues moving to the upside and enters the upper range it will likely continue increasing and potentially breakout from the upper since on the descending triangle. But if the price finds resistance at the current levels and continues moving to the downside again another downturn could be expected with the price breaking the descending triangles support.

Considering that the price has been in a corrective descending structure from the 5th of September we are just short of the completion of the corrective move. This is why we could have seen its completion on yesterday’s low but validation is first needed.

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

Will Stagflation Persist in the UK? EUR/GBP Volatility May Be an Indicator

In recent years, the United Kingdom has found itself mired in a sea of economic uncertainty, prompting widespread speculation about the dreaded 'R-word'—recession. While the nation has navigated a prolonged cost-of-living crisis marked by noticeable spikes in everyday expenses,

Trader’s Tools

Momentum Trading Strategies for Day Traders

Momentum trading is a highly-regarded trading strategy used to seize opportunities in trending markets. This article explores momentum trading and offers two comprehensive strategies for capitalising on rising and falling markets. What Is a Momentum Trading Strategy?Momentum trading is

Trader’s Tools

Selecting a Reliable Broker

When it comes to trading and investing, choosing the best online brokerage service is crucial. There are many options available, so it can be difficult to decide which one to go with. To choose wisely, you need to look at

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.