LTC and EOS - Correction soon to come?



The price of Litecoin continued increasing since last week. From its lowest point last Thursday when it was sitting at $175.78 we have seen an increase of 36.57% measured to its highest point today at $240. Currently, it is being traded just below $230, but the price is in an upward trajectory overall.


Looking at the hourly chart, you can see that the price of Litecoin was in an upward trajectory from the 27th of January when it made the second test of the horizontal support level which was the lower level of the descending triangle in which it was correcting.  As a breakout was made in early February it set the price for a higher high than in January. This is the development of the next five-wave move to the upside.

There is still more room to go before the end of this five-wave impulse but it is still unclear where the price increase could end. If the 3rd wave ended on the $194.31 level then currently we are seeing the development of the final wave’s 3rd sub-wave. In that case, another leg up would be expected of the lower degree. But if the 3rd wave of the higher degree count ended on yesterday’s high, then the price of Litecoin has more increasing potential.


The price of EOS peaked on the 13th of February when it reached $5.6. From there it has been in a decline spiking all the way down to $4.2 at its lowest point. However, we have seen a recovery to $5 where it found resistance again and is now moving to the downside, currently being traded at $4.7.


On the hourly chart, we can see that the peak made on the 13th could have been the completion of the five-wave impulse that started on the 22nd of January. In that case, the downside movement that is currently developing would be its higher degree correction and is now going to push the price of EOS below the 1.272 Fibonacci level for a lower low. Potentially it could fall back to the first significant horizontal level in line to the downside at around $3.93. This level would be the prior resistance now probably going to serve as support but this has to be validated by a proper test.

If this scenario plays out it would make the three-wave move from the 13th and would mark the completion of the higher degree correction after which further price appreciation would be expected.

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.

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