LTC and EOS in a descending range

LTC/USD

From last Thursday when the price of Litecoin was sitting at it’s highest at around $50.57 we have seen a decrease of 11.42% as it came down to $44.86 at its lowest point today. Since then we have seen a slight increase with the price currently being traded at around $45.89.Looking at the hourly chart, you can see that the price came down in a descending channel that started forming since last Thursdays high and interacted with its support level today where it found support once again. As the price bounced from the support level we could have seen the completion of the correction with the price now starting another wave to the upside.

If the price of Litecoin has ended it’s corrective stage the next move to the upside would lead it into a breakout from the descending channel and potentially on to the $52 level as we are most likely seeing the development of the 4th wave out of the higher degree count.

We could see further retest of the descending channel’s boundaries but it looks like it’s starting to get close to the vicinity of the 1st wave’s ending point at $44.3 so there isn’t much room to go. If the price, however, continued moving below $44.3 point it could invalidate the possibility of the uptrend continuation in the 5th wave but that isn’t as likely.

EOS/USD

The price of EOS has decreased by 15.77% from last week’s Thursday as it came down from $3.1 to $2.61 at it’s lowest point today, but like in the case of LTC found support on it’s descending trendline and has started increasing again.

On the hourly chart, you can see that the price fell inside the territory of the presumed 1st wave of the higher degree invalidating the impulsive count which was started as a possibility in the case of Litecoin. This could serve as an early indication that the price of LTC is going to do the same but never the less from here I would be expecting an increase.

The descending structure made a five-wave move which could be an ABCDE correction especially considering that it appears to be more of a triangle then a channel. The next horizontal level in line to the upside is at $3.2 so it looks highly probable that the price is headed towards the level but we are yet to see from which side a breakout will be made from the current descending structure.

Nikola Lazić

Expertise: Cryptocurrencies, Technical analysis, Elliot waves, Fibonacci
Nikola has a bachelor degree in Sociology, which gives him the edge in the financial market, knowing a lot about herd mentality. That is why he uses Elliot wave principles mostly, in combination with Fibonacci levels. He started learning more about financial markets back in 2015 and is now a full-time trader.
As an anarcho-capitalist, he fully supports the vision of decentralized future offered by cryptocurrencies, that’s why his attention and interest are mostly focused on them. His analysis has been praised by some of the most influential people from the cryptocurrency scene, like Jeff Berwick, the founder of The Dollar Vigilante Newsletter, Vit Jedlicka, the president of Liberland, and other trader colleagues.