LTC and EOS - Correction developing

FXOpen

LTC/USD

From yesterday’s high at $78 the price of Litecoin has decreased by 10.51% as it came down to $69.82 at it’s lowest point today. The price is currently being traded around those levels as it’s attempting to establish some support.

LTC and EOS - Correction developing

Looking at the hourly chart, we can see that the price came down to the ascending trendline and retested its intersection with the $69 horizontal level with a spike but the hourly candle closed above it leaving a large wick to the downside. This indicates that support is present at those levels but this might not be for much longer as we have seen strong bearish momentum since yesterday.

At the momentum, we can see a cluster being formed slightly above the prior low levels with a downward trajectory which can be interpreted as a sign of bearish pressure applied to the support levels below. This is why we are most likely to see a breakout to the downside with the price continuing to move below $69 level and potentially reach the 0 Fib level of the lower range which would bring the price of Litecoin at around $63.

If the price, however, manages to hold above the current levels a recovery could be seen but for now, it looks more likely that the price is to continue moving straight down as it came below the $72.414 horizontal level.

EOS/USD

The price of EOS has decreased by 18.93% since yesterday’s high at around $4.6 as it came down to $3.724 and even spiked further down. Since then we have seen a slight recovery with the price managing to stay above the $4 mark.

LTC and EOS - Correction developing

On the hourly chart, we can see that the price like in the case of Litecoin found support at the lower ascending trendline vicinity and came just above the 0 Fib level before it found support. The recovery that followed hasn’t made any major gains and is struggling to keep the price above $4.

If we have seen the completion of the B wave from the ABC correction the C wave is in development which is why further downside movement could be expected. Projecting the length of the A wave on to the B wave we come up with a target at around $3.28 horizontal level which is a significant one so we might see it’s retest before the completion of this descending move.

This decrease is considered a corrective one so further uptrend continuation would be expected after but in the meantime, we are yet to see where it ends.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Cryptocurrencies

Bitcoin Price Hits a Month's High, Breaking Key Resistance April Became the Worst Month for BTC/USD Since November 2022 Bitcoin Price Bullish after Halving-2024 ADA Drops to Last Place in the Top 10 Cryptocurrencies BTC/USD Analysis: Bitcoin Price Rises Ahead of Halving

Latest articles

Shares

Coinbase (COIN) Stock Price Holds at Key Support Level

On Thursday, stock market traders were concerned about the sharp drop in Coinbase shares, listed on the Nasdaq, which fell by 9%. This was triggered by rumours that the Chicago-based CME Group is planning to launch cryptocurrency trading, posing a

What Is the Gold/Silver Ratio, and How Do Traders Use It?
Trader’s Tools

What Is the Gold/Silver Ratio, and How Do Traders Use It?

The gold/silver ratio, which measures the relative value of these two precious metals, is a vital tool for commodity traders. Understanding this relationship helps identify market trends and trading opportunities. This article explores how to calculate, analyse, and trade

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P500, US Dollar, Gold Price, PEP Stocks

Get he latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.