LTC and EOS - Consolidation now expected but further decline still a possibility

Nikola Lazić -

LTC/USD

The price of Litecoin has been on a decline from yesterday’s high of $391 made a decrease of 21.8% as it fell to $306.35 at its lowest point today. It spiked further down buy managed to snap back quickly and is currently being traded at $313.69.

Looking at the hourly chart, you can see that this downfall was the continuation of the descending move from Monday when the price reached $411 at its highest. This was most likely the end of the higher degree 3rd wave from the impulse wave that started at the start of the year. If so, we are now seeing the 4th wave of the same degree developing to the downside.  Measured from its last increase from the 26th of April the price fell down to the 0.5 Fib level and found support there. But this only might be a temporary hold before further downside continuation.

We could have seen the completion of the ABC correction in which case now we are to see the start of the next 5th wave to the upside, but there isn’t still any signs of the buyers entering the market. If we are to see the start of the next impulsive move strong confirmation would be needed.

EOS/USD

The price of EOS has fallen by 32.5% from its yesterday’s high of $14.72 as it reached $9.96 at its lowest point today. It is now sitting slightly above the $10 mark as it appeared to have stablizided and is showing some first bullish signs.

We have seen the completion of the five-wave move to the upside yesterday, that start on the 26th of April. This is why now the price has started a descending move as a corrective one, but if this was the start of the higher degree correction it might continue pushing the price significantly lower in the upcoming period. Now in the short-term, we are most likely going to see a consolidation range that could lead to a minor recovery but not above the $12 before the next move to the downside starts.

If however the price manages to move above the $12 area and falls back on a higher low on the next move it could be an early indication that the decline ended and that we are seeing the start o the next impulsive move to the upside.

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.