LTC and EOS - Retesting the broken levels for resistance



From Monday’s high when the price of Litecoin was sitting at around $74, we have seen a decrease of 26.67% measured to the lowest point the price has been yesterday which was at $54.25. Currently, the price is being traded at slightly above $57 as the price made a minor recovery from yesterday’s downfall but as you can see from the hourly chart the price is now retesting the broken horizontal level for resistance.

LTC and EOS - Retesting the broken levels for resistance

Prior to the impulsive downfall, we’ve seen a five-wave corrective move in an ascending triangle which pushed the price above the $72.4 significant level but as it was corrective another impulsive move to the downside started after its completion. As we are now likely seeing the development of the impulsive five-wave decrease the price is likely to continue moving to the downside for a bit more to some of the lower horizontal support levels.

As the price is currently retesting the $57.5 level for resistance we are to get a confirmation soon which would be in a form of rejection. The price is developing it’s 4th wave to the upside which is also corrective in nature which is why I would be expecting another downfall as the 5th wave should develop. If this is true, then the price is now likely to continue retesting the level or form a horizontal range between the $57.5 and the $52.4 horizontal levels but it might fall down to the $49.23 or $44.95 before the end of the decrease.


The price of EOS has been sitting around $3.86 at its highest point on Monday from where we have seen a decrease of 37.84% measured to the lowest spike yesterday which was at $2.4. Now the price is being traded at $2.85 as we have seen a price recovery but like in the case of Litecoin the price is currently retesting its broken horizontal level from the downside, meaning the level is now serving as a resistance point.

LTC and EOS - Retesting the broken levels for resistanceLooking at the hourly chart, we can see that prior to the downfall the price made a five-wave increase to the $4.16 horizontal level where it got rejected. The increase seen was most likely the Y wave from the WXY correction to the upside dating from the 16th of July. If this is true, then now we have seen the downtrend continuation as the correctional stage completed with the price now moving impulsively to the downside.

If the price finds resistance at the current levels another drop could be expected, or we can see the recovery continuing above the resistance point for a bit longer before another downfall to the lower levels at around $2.

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

Market Analysis: Results of Black Friday in Financial Markets BTC/USD Analysis: Bulls Preparing New Assault on 37,500 Level? BTC/USD Analysis: Bears Aggressively Defending 37,500 Level BTC/USD Analysis: JP Morgan Analysts Warn of a Possible Correction Market Analysis: ETH/USD Growing Rapidly on News from BlackRock

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Falls to Its Lowest Level Since Mid-August

EUR/USDThe euro strengthened on Monday as the dollar fell on expectations that the Federal Reserve will not raise rates again. Traders this week will have to weigh data on how the US economy performed in the third quarter, as


NASDAQ Composite Index Heralds a Fine Time for Tech Stocks

In the ever-fluctuating landscape of financial markets, the NASDAQ exchange, home to some of the world's most prominent technology stocks, has been a bastion of volatility over the past two years. This week, the NASDAQ index continues its upward trajectory,

Trader’s Tools

Fibonacci Retracement Strategies

Fibonacci retracements are a cornerstone in the toolkit of many traders, offering a mathematical approach to identifying potential areas where reversals may occur. This article delves into the intricacies of using Fibonacci retracements, covering everything from basic understanding to strategies

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.