LTC and EOS - Upward Momentum Slowing Down

FXOpen

LTC/USD

Since the start of the month, the price of Litecoin has decreased by 29.33% as it fell from $64.4 high made on September 1st to $45 area on the 4th and revisited the low level two more times after. Currently, it is being traded at around $48.5 and is in an upward trajectory but a minor retracement has been made with the price showing signs of the momentum slowing down.

LTC and EOS

Looking at the hourly chart, you can see that the price is again retesting the horizontal resistance level at around $49.106 were it found resistance two previous times and after the interaction pulled back to the low levels made last Friday. This is a significant horizontal level and its breakout to the upside would indicate that the previous descending move that we have seen has likely ended.

From the 18th of August when the price of Litecoin came up to $69 we have seen a correction developing out of which we have seen the development of the first three-wave move followed by a connector to the upside. This could mean that the next Z wave to the downside has ended with this descending move. In that case, the U shape we are currently seeing in development could be the ending point of the correction and we are to see a breakout to the upside above the currently interacted horizontal level.

But if the impulsive move to the downside seen from the end of the month is only the first sub-wave of the next three-wave move to the downside, this U shape range might only be a consolidative B wave in which case we are going to see another rejection at the horizontal level ending with a breakout to the downside.

EOS/USD

The price of EOS has decreased by over 30% since the start of the month when it was trading at $3.554 at its highest point, measured to the lowest point made last Friday at $2.47. Since last week’s low, a significant upside spike was seen pushing the price above $3.2 level but is now being traded at around $2.75 as another descending move has been made. 

LTC and EOS

From Friday’s high at $3.239 the price continued moving to the downside again and made another five-wave triangle but managed to keep up above the $2.68 level which was tested on Monday and again yesterday. With the price finding support there an ascending move has been made with a breakout from the descending triangle, but the price is struggling to keep up the bullish momentum above the 0 Fib level below which is currently being traded again. 

If we have seen the completion of the ABCDE correction on Monday’s low the next move that followed could be another impulsive move to the upside out of which we are currently seeing the development of the 3rd wave. In that case, the price could continue increasing to its next horizontal resistance level potentially around $2.88 when it might get rejected, causing another downturn.

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