LTC and EOS - Downside expected

FXOpen

LTC/USD

From Monday when the price of Litecoin was sitting at $41.87 at its lowest point we have seen an increase of 7.77% measured to the weekly high made yesterday when the price came up to $45 level. Since then a slight retracement has been seen with the price going down to $43.1 at its lowest today but has managed to come up above $44 mark where its currently being traded.

LTC and EOS - Downside expectedOn the hourly chart, you can see that the price has stabilized around the local horizontal support level and is further establishing support after a three-wave move to the upside has been made. This three-wave move retested the $45 level twice before we have seen a descending one today. It came after an impulsive move to the downside which pushed the price in a decrease of 10.62% but there hasn’t been an interaction with the significant $41.7 horizontal level.

If we have seen a corrective ABC to the upside then it is most likely the 2nd sub-wave of the higher degree three-wave move to the downside and is why from here I would be expecting further downtrend continuation with a breakout below the mentioned significant horizontal support. The next significant support area in line to the downside would be at around $39.2 so I would be looking for the correctional higher degree count to end around it’s vicinity.

EOS/USD

The price of EOS has made a similar pattern as from Monday when a lower low was made to $2.424 we have seen an increase of 7.49% to $2.605 but another descending move followed as a three-wave upward correctional move developed.

LTC and EOS - Downside expectedLooking at the hourly chart, you can see that like in the case of Litecoin the expected downside movement from the current levels is considered the 3rd of a higher degree count which is again the Y wave of an even higher degree correction that started since the beginning of May. This is why I would be expecting a significant decrease from the current levels potentially all the way down to the most significant horizontal area at around $2.1

If we are seeing the start of another descending move of a higher degree then it wouldn’t come down in a straight line, instead, we are to see the development of another ABC of a lower degree count with potentially the C wave being the most impulsive one to bring the price down in a sharp manner like it did on the 10th of May.

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