LTC and EOS - Are we seeing the establishment of an uptrend?

FXOpen

LTC/USD

The price of Litecoin has been on the rise since Tuesday when it fell to $234 at its lowest point. It is currently being traded at $281 which is an increase of 21.45% from Tuesday and is still in an upward trajectory.

LTC and EOS

On the hourly chart, you can see that the price of Litecoin is currently sitting at the level of its Monday’s high and has found resistance, indicated but the wick on the seller’s side on the hourly candle. However, we have seen a breakout from the descending triangle which is why the momentum looks strong enough to push the price higher.

If we have seen the completion of the corrective move from the 17th, the next move could be the starting five-wave impulse to the upside that is going to make new highs. Another possibility could be that the price is forming the second sub-wave of the higher degree correction in which case the current rise would end as a three-wave formation. But in either way from here another high to around the $310 area would be expected.

From the pullback that would be anticipated after we are going to see which scenario is in play as if the price falls back below $280 again on the pullback, it would invalidate the possibility of the price forming a five-wave impulse. In that case another lower low could be seen below the $230 area but for now the chart of Litecoin looks bullish.

EOS/USD

The price of EOS has shown an increase of 8.75% today, coming from its lowest point of $6.165 to $6.7 where it’s currently sitting. It has broken out from the descending triangle formed from Monday which is a positive sign and is why further upside would be expected.

LTC and EOS

Today’s low was the third retest of the horizontal support level that started being tested after a downfall from $8.755 made on the 17. of April. This fall could have been the start of the higher degree downturn after the previous 5th wave of the five-wave impulse ended. In that case, the current formation would be corrective in nature and would be labeled as the ABC to the upside after which another attempt to establish support would be seen, potentially as a lower low compared to the one made on Sunday.

In a bullish scenario, we could have seen the completion of the descending move in which case we are seeing the start of the next impulse to the upside from Tuesday. In both cases, the price would now be expected to continue moving to the upside at least to the $7.8 area where the ascending trendline, previously serving as support is. If the price gets rejected from there and continues moving below the $6.8 area that would invalidate the possibility of a five-wave impulse, but if we see the price enter the territory of the upper range it would be a bullish sign.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.

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