LTC/USD and EOS/USD in a bearish pennant

FXOpen

LTC/USD

From Monday’s spike at $62 the price of Litecoin has retraced by 11.8% as its currently trading at $54.73.

LTC/USD and EOS/USD in a bearish pennant

Looking at the hourly chart we can see that the price action is now back on the descending channels resistance line, which now serves as a support. As you can see, the price action formed an ascending channel that breaks out from the descending one. But it results in a painful and slow upward move followed by a massive red candle bringing the price back inside the territory of the descending channel. It happened on Monday and happened two more times previously. I believe that this will happen this time as well and the price is heading down to the lower support zone line at $49.2 or even lower to the support zone lower line 2 at $44.62.

Zooming out on to the 4-hour chart you can clearly see where these significant horizontal levels originate from, and that zone was the main plateau from which the all-time high was made. It would be very significant to break it as it serves as a strong support and was well respected in the past. The price hasn’t gone below it since August last year.

LTC/USD and EOS/USD in a bearish pennant

Elliott Wave Projection 

Looking at the daily chart below you can see the Elliott Wave labelings. As you can see after a WXY move, which pushed the price to the first lower level of the support zone, an ABCDE correction has developed. This is this current cluster around the support zone.

LTC/USD and EOS/USD in a bearish pennant

As the E wave ends on the resistance line, more downside is expected at least to the S2 of the support zone or potentially a breakout from it and even a lower target below $44.

EOS/USD

From the levels of Monday’s spike at $6 the price of Eos has fallen by 8.86% and is currently trading at $5.55.

LTC/USD and EOS/USD in a bearish pennant

Looking at the hourly chart we can see a similar chart pattern to that of Litecoin – a bearish pennant. The price action is currently below its resistance line while the spike on Monday was above it. Sellers have pushed the price back inside the territory of the triangle and the price is hovering around the midpoints of the spike from the horizontal level at $5.15 to the high at $6.08.

Zooming out onto the 4-hour chart we can see that the price has broken out off of the downtrend resistance line prior to the formation of the bearish pennant.

LTC/USD and EOS/USD in a bearish pennant

Judging by the momentum behind the selloff the price is heading further lower after this last consolidative triangle. The price might break out from the upside and go to retest the uptrends baseline support, which now serves as resistance but will continue to a lower low afterward in either case.

Elliott Wave Projection 

LTC/USD and EOS/USD in a bearish pennant

One could argue that the consolidative triangle we are currently seeing will end as a baseline for another increase in price like it did last time in March. But according to my Elliott Wave count, this isn’t the case. Last time we’ve seen a triangle the correction inside it ended on its support and was impulsive.

As you can see from the graph on the left, the correction was a WXYXZ followed by an impulsive move after the Z wave from a higher degree ended previously.

Looking at the daily chart below you can see the Elliott Wave labelings and the price context for the mentioned correction.

The current triangle, which can be interpreted as a bearish pennant, is not corrective after an impulsive move. It is consolidative after the price decreased by 76% from the all-time high. When the price ends consolidating, which is going to happen very soon, a trend continuation will occur pushing the price lower at least around to $4.5. But my target is on the next horizontal support level at $3.27.

LTC/USD and EOS/USD in a bearish pennant

Trade altcoins on FXOpen Crypto accounts.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — 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

Ethereum Price Falls after Exceeding $3,000 Ethereum Price Exceeds $2,800 Bitcoin Price Exceeds Psychological Level of $50k Bitcoin Recovers to January 11 Prices When ETFs Were Approved A Major Network Outage in Solana Had Little Impact on the SOL/USD Exchange Rate

Latest articles

Forex Analysis

EUR/USD Analysis: Euro Showing Signs of Strength

Today news was published about the values of PMI indices for European economies. Data from France was encouraging: → French Flash Manufacturing PMI: actual = 46.8, expected = 43.5, a month ago = 43.1; → French Flash Services PMI: actual = 48.0,

Shares

NVDA Share Price Soars 11% after Report

The signs of concern we wrote about yesterday have largely subsided. After three days of declines, the price of E-mini Nasdaq 100 futures bounced off the lower boundary of the channel (see yesterday's chart) and rose, led by NVDA stock.

Cryptocurrencies

Ethereum Price Falls after Exceeding $3,000

We previously wrote about the reasons for the positive sentiment in the ETH/USD market. Optimism was added by a post on X (Twitter) by Vitalik Buterin about the so-called Werkle trees. This technology, which should (according to the information

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. 65.68% 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.