LTC and EOS - Correction developing but more upside to come

FXOpen

LTC/USD

The price of Litecoin has increased by 40.44% from last week when it was sitting at $41.355 at its lowest point measured to the highest spike it made on Tuesday when it reached $58 at its highest. Since then we have seen a retracement of around 7% with the price falling to $54 but is currently being traded slightly higher although in a downward trajectory.

LTC and EOS - Correction developing but more upside to come

On the hourly chart, you can see that from last week’s low made on Tuesday when the price made an interaction with the $41.714 level an impulsive parabolic move to the upside has been made in a steep manner. As the price found support at the mentioned level after making a minor spike below it, the buying was activated and pushed the price first into an initial five-wave impulse which could have been a C wave from the corrective count but instead after a local retracement continued to move impulsively to the upside breaking the $50 area resistance and continuing strongly above the $52 area as well.

This is why we have seen further upside continuation as the price is in a five-wave impulse from the higher degree count out of which we have most likely seen the development of its 3rd and the most powerful wave. As now we have seen the price pulling back below it’s prior local high and falling below it’s territory an early indication has been provided that the 4th wave could be in development in which case we are currently seeing it first sub-wave A from the presumed ABC correction.

If this is true then the further sideways movement would be seen with the price potentially making an attempt to retest the high made on Tuesday this week before making a lower low which would be the C wave from the lower degree count, but as this is considered the 4th wave after it’s completion another move to the upside would be expected as the 5th wave should develop.

EOS/USD

From last week’s low made on Monday at $2.557, the price of EOS has increased by 23.76% as it came up to $3.1646 at its highest point on yesterday but has since then made a decrease of 6%. At the moment this cryptocurrency is being traded above the $3 mark as a minor recovery is being made but is in a downward trajectory overall.

LTC and EOS - Correction developing but more upside to come

Looking at the hourly chart, we can see that from the 16th of July when the first minor move to the upside has been made the price of EOS has been developing a five-wave impulse to the upside and has now developed most likely it’s 3rd one with the price now likely undergoing a more significant corrective stage as the 4th wave should develop. Considering the impulsiveness seen it is unlikely that the price is going to be pushed for much lower than the ending point of the prior lower degree 5th wave which is around $2.9 but in theory, the price could continue moving to the downside to the $2.6 area where the beginning of the territory of the 1st wave is.

This is highly unlikely and in the most optimal scenario, we are to see an interaction with the ascending trendline made from the 16th of July which would bring the price of EOS somewhere above $2.8 before the next upturn starts as the 5th wave to the upside would be expected to start after. The target for the completion of the 5th wave could be at the significant horizontal resistance at $3.27 but the price could continue increasing further above it.

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