The Bias for LTC/USD and EOS/USD is Short-term Bullish

FXOpen

LTC/USD

From last Monday high at $53.8 the price of Litecoin has decreased by about 9% at its recent lowest point at $48.87. Currently, the cryptocurrency is traded at $50.029, which almost a 2% recovery from the mentioned low as the price is in an upward trajectory.

The Bias for LTC/USD and EOS/USD is Short-term Bullish

On the hourly chart, we can see that the price went below the horizontal support level at $52.4 and a big red candle appeared indicating that selling was activated around that area. As the price dropped, it went below the next horizontal support level at $49.23 dipping two times below it and leaving two wicks that both reach out to $48. Currently, as the price has recovered with a big green candle, we are seeing a minor descending structure that is corrective in nature and will likely result in another increase from these levels.

Zooming into the 15 min timeframe I have counted the corrective sub-waves and they confirm the assumption that the price is heading further up from here.

The Bias for LTC/USD and EOS/USD is Short-term Bullish

The first correction is a sideways correction – WXYXZ, after which a three-wave correction occurred and the third and the current one is another three-wave correction in the opposite direction. The target for the last Y wave is around the prior range support at $51.59, which correlates with the length of the W wave projected from the assumed X position. The target will vary from the X wave ending point as the correction has more room to end.

This correction will end up as a triple three correction, if it ends as projected, and because the last wave ends on the upside, a trend will continue to the downside. The horizontal support level at $49.23 is the S1 from the support zone range. It makes it a highly significant level. However, as it was weakened I believe that it is going to be broken on the next run down leading the price to the next support level, which is the S2 from the mentioned range at $44.621.

EOS/USD

Since last Monday, the price of EOS went from its high at $5.5 to $5.39 steadily but has dropped from there steeply and quickly to $5.05 and found support on the horizontal level at $5.133. It is now above it, trading at $5.247, which is an overall decrease of 4.6%.

The Bias for LTC/USD and EOS/USD is Short-term Bullish

Looking at the 4-hour chart you can see the mentioned significant horizontal level from which the price bounced off and recovered slightly reaching $5.3 level. It pulled back to the minor support level where it is retesting the support. If the price does find the support we would be expecting another move to the upside potentially reaching the level from which the price fell steeply around $5.4. Now we can expect more downside below the mentioned horizontal support level market with a blue bold dashed line.

Zooming into the hourly chart we can see a similar situation like in the case of Litecoin.

The Bias for LTC/USD and EOS/USD is Short-term Bullish

The price went three times below the significant horizontal level before spiking up and now it is forming a descending structure that is corrective in nature. Unlike in the case of Litecoin here we can see only two corrections, the third one to the downside before spiking up again could be a possibility. The target price would be around $5.4 area, which is the next horizontal significant resistance level.

In either way we may expect the price to go down below the prior low as the wave Y ends on the upside, and a trend continuation should be expected.

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

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

Indices

S&P 500 Inches Down After Long Rally as FOMC Minutes Approach

Aside from the performance of a national currency, a popular yardstick by which to gauge anticipation or reaction to an economic event or announcement is the market sentiment surrounding the top listed stocks on premier exchanges. Today, as market participants

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.