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



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.


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, 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

Bitcoin Cash Analysis: Promising Resistance Breakout Cryptocurrency Prices Rise on SEC Rumours Market Analysis: Bitcoin Sets September High BTC/USD Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: Inflation, EUR/USD, S&P 500, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Inflation Still Dogs the

Forex Analysis

Market Analysis: Dollar Falls from 10-month High

EUR/USDThe euro rose on Thursday as the dollar retreated since investors remained cautious ahead of key inflation figures due on Friday. Data on Thursday showed the US economy maintained fairly strong growth in Q2, with an unrevised annual rate


US 30 Analysis: Dow Jones Finds Support

September is likely to be the second month in a row that the Dow Jones (US 30) stock market index declined. The last time this happened was... also in September, a year ago. Important economic data was published yesterday: → According

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.