LTC and EOS - Correctional upside after downward impulse expected



From Mondays high when the price of Litecoin reached the projected high at $68.52 and ended its 5th wave, we have seen a decrease of 14.69% measured to the yesterdays low at $58.779. Since then we have seen a recovery to $63.7 but with the price currently being traded slightly lower at $62.24 level.

LTC and EOS - Correctional upside after downward impulse expected

On the hourly chart, you can see that price moved to the downside in a five-wave manner which indicated impulsiveness after a higher high has been made compared to the one on the 2nd of August. As we have most likely seen the completion of the 5th wave to the upside now either a corrective one to the downside has been starting or an impulsive higher degree one.

At the moment the price is retesting the 0.786 Fibonacci level for support and is came above and below it but is likely to find support there and continues increasing as the C wave from the corrective lower degree ABC correction would be expected to develop as the three-wave counter trend move. Its target would optimally be the 1 Fib level which is the significant horizontal level from the August 2nd’s high and the Monday support now broken to the downside. So after a retest for resistance is made another five-wave impulse to the downside would be anticipated to the 0.236 Fib level or even lower, depending on whether or not we are seeing the development of the ABC correction or another higher degree impulse.

If we are seeing a corrective ABC of the Minuette count projecting the length of the A wave on to the presumed ending point of the C wave at the 0.786 Fibonacci level we come up with the target of $54.8


The price of EOS has been decreasing from Monday’s high at $3.922 to $3.27 which was a decrease of 16.31% but made a recovery since and is currently trading at around $3.4.

LTC and EOS - Correctional upside after downward impulse expected

Looking at the hourly chart, you can see that the price made another five-wave increase from the 12th of August which was the ending wave of the higher degree. The 4th wave correction was expected to continue for a bit longer but it had ended on the retest of the significant horizontal support zone just below the $3 mark.

As support has been found, most likely we have seen the development of the ABCDE correction after which the 5th wave of the higher degree count has been made which is why now we are likely seeing the development of the correctional movement of the same degree.

If this is true, then the price is currently undergoing a local ABC which is set to bring the price a bit higher but is ultimately leading to another five-wave impulse to the downside. The most significant support in line to the downside would be the mentioned horizontal support zone below the $3 mark and the Fibonacci retracement tool aligns its 0.236 level with the upper level to whom the interaction is being awaited.


FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — 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

Cryptocurrency Prices Rise on SEC Rumours Market Analysis: Bitcoin Sets September High BTC/USD Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years BTC/USD Price Analysis: RSI Drops to Lowest Since March 2020

Latest articles

Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows

The main currency pairs began the last five-day trading period of September with a new wave of growth for the American currency. Changes in the Fed's point forecast for next year provided powerful support to the dollar, which, in turn,

Forex Analysis

Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

In an intriguing turn of events, the US Federal Reserve has hinted at the possibility of yet another interest rate hike in the near future, keeping financial markets on their toes. During its September 2023 meeting, the Federal Reserve chose

Forex Analysis

USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

The reason for the stable trend, as we have repeatedly pointed out, is the difference in the monetary policy of the USA and Japan. Inflation in Japan has been above 2% for more than a year, and the media are

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.