Experienced technical analysts know all too well to filter out their emotions when looking at a chart. This is doubly true when looking at charts that you have seen many times before and where you may have strong opinions.
It’s critical to keep an open mind and to examine the chart for signals the way a detective may examine a crime scene.
At this point, recent evidence suggests a brewing excitement has been returning to the cryptocurrency complex, and the charts we’re going to look at today – EOS and Litecoin (LTC) – represent different versions of that new theme.
Along with many other coins, EOS has begun to challenge key resistance levels that have been defining the bearish context for this coin for the last three months.
Among the most immediate such barriers standing in its way right now is the declining 50-day simple moving average, which crosses the chart just above the $9 level at present.
This is an important marker because it also corresponds with resistance at the range defining the highs over the past month.
EOS is coming off of key support around the $7 level earlier this month. This represents a double bottom in concert with support seen in late June.
The overall context suggests itself as confirmation of key support in place with a test of key resistance now underway. As such, if this is a new and important bullish move, we should see evidence of it very soon. And if we do, it will be time for HODL EOS.
- High: $83.06
- Low: $80.94
- Major Resistance Level: $92.00
- Hourly MACD: Recent Upside Momentum
Litecoin (LTC) has been lagging the action in the broader cryptocurrency complex for most of this year. However, recent action suggests that it may be about to play a bit of catch-up.
Most importantly, Litecoin (LTC) is beginning to challenge key resistance at the trailing month range highs as well as some major moving averages.
The most important move we could see from here would be a break above the 50-day simple moving average and the mid-July highs to test the key psychological round number of $100.
That would represent an acceleration of recent upside activity as well as a breach of the downward trend, potentially marking out a new tone for Litecoin (LTC) as we head into August.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com