- Litecoin could continue with the breakdown in the coming week; its downside eyes $130.
- Bitcoin Cash fails to sustain recovery as losses back to $400 linger.
- EOS is stuck in consolidation between the resistance at $2.8 and support at $2.6.
The cryptocurrency market has had a burst this week, with some assets breaking out to all-time highs while others recorded massive losses. Polkadot emerged as one of the top weekly gainers, displacing Ripple from the fourth position as reported. On the other hand, Litecoin, Bitcoin Cash, and EOS succumbed to selling pressure, losing 23%, 22%, and 28%, respectively.
Litecoin’s breakdown eyes $130
Litecoin was recently rejected at $160 mainly due to the resistance at the 50 Simple Moving Average. Overhead pressure has not reduced, with declines extending under $140 as predicted. At the time of writing, LTC is trading at $136 amid building bearish pressure.
The bearish leg is likely to extend to $130, especially if the 200 SMA fails to hold. Besides that, the primary support lies at $110; thus, massive losses might come into the picture if selling pressure intensifies. The least resistance path is downwards, as confirmed by the Moving Average Convergence Divergence.
LTC/USD 4-hour chart
Bitcoin Cash prepares for another dive to $400
Bitcoin Cash recently established at support at $400 level, giving way to considerable gains. The uptrend became strong enough where BCH price broke many hurdles, including $450 and $500. A weekly high was reached at $540 before a reversal came into the picture.
A significant bearish trend is forming with the price breaking under the ascending parallel channel. Support is envisaged at $450, highlighted by the 100 SMA. These areas may be tested if Bitcoin Cash’s declines overshoot $470. If selling activities soar, the bearish leg could extend to $400 before a reversal comes into the picture.
BCH/USD 4-hour chart
EOS ends the week in consolidation
EOS has struggled with recovery since the breakdown on Monday. The support at $2.4 was very instrumental. On the upside, the movement has been capped under all moving averages; the 50 SMA, 100 SMA, and the 200 SMA. The 4-hour chart shows that consolidation is likely to take precedence between $2.8 and $2.6.
EOS/USD 4-hour chart
Extensive losses may come into the picture if EOS breaks under the short term support at $2.6. The primary anchor at $2.4 will likely come in handy before a reversal occurs. On the upside, resistance at $2.8 and $3 will remain in place.
Author: John Isige