LTC and EOS - Downside expected



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.


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.

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: US Dollar On the Rise Despite Weak PMI Data

EUR/USDThe euro fell against the US dollar on Friday as economic data showed a contraction in economic activity, which could prompt European Central Bank hawks to soften their policy stance. Preliminary data indicates a contraction in economic activity in

Financial Market News

Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar

The US, Japan and the UK may have kept interest rates on hold last week, but with the Federal Reserve indicating that rates will stay higher for longer, there is turmoil in the equity markets. The NASDAQ 100 fell 500

Financial Market News

Financial Markets Waking Up after a Turbulent Week: Important News

The main event of last week was information from the Fed. Jerome Powell once again demonstrated his determination to maintain a tough political stance, which caused: → increase in bond yields. Yields on 10-year securities reached their highest since 2009; → the

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.