LTC and EOS - Retesting the broken levels for resistance

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LTC/USD

From Monday’s high when the price of Litecoin was sitting at around $74, we have seen a decrease of 26.67% measured to the lowest point the price has been yesterday which was at $54.25. Currently, the price is being traded at slightly above $57 as the price made a minor recovery from yesterday’s downfall but as you can see from the hourly chart the price is now retesting the broken horizontal level for resistance.

LTC and EOS - Retesting the broken levels for resistance

Prior to the impulsive downfall, we’ve seen a five-wave corrective move in an ascending triangle which pushed the price above the $72.4 significant level but as it was corrective another impulsive move to the downside started after its completion. As we are now likely seeing the development of the impulsive five-wave decrease the price is likely to continue moving to the downside for a bit more to some of the lower horizontal support levels.

As the price is currently retesting the $57.5 level for resistance we are to get a confirmation soon which would be in a form of rejection. The price is developing it’s 4th wave to the upside which is also corrective in nature which is why I would be expecting another downfall as the 5th wave should develop. If this is true, then the price is now likely to continue retesting the level or form a horizontal range between the $57.5 and the $52.4 horizontal levels but it might fall down to the $49.23 or $44.95 before the end of the decrease.

EOS/USD

The price of EOS has been sitting around $3.86 at its highest point on Monday from where we have seen a decrease of 37.84% measured to the lowest spike yesterday which was at $2.4. Now the price is being traded at $2.85 as we have seen a price recovery but like in the case of Litecoin the price is currently retesting its broken horizontal level from the downside, meaning the level is now serving as a resistance point.

LTC and EOS - Retesting the broken levels for resistanceLooking at the hourly chart, we can see that prior to the downfall the price made a five-wave increase to the $4.16 horizontal level where it got rejected. The increase seen was most likely the Y wave from the WXY correction to the upside dating from the 16th of July. If this is true, then now we have seen the downtrend continuation as the correctional stage completed with the price now moving impulsively to the downside.

If the price finds resistance at the current levels another drop could be expected, or we can see the recovery continuing above the resistance point for a bit longer before another downfall to the lower levels at around $2.

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