LTC and EOS - Exponential growth coming to an end?

FXOpen

LTC/USD

From the 3rd of January when the price of Litecoin was sitting at $38.9 we have seen an increase of over 52% as it came to $59.34 at its highest point yesterday. Currently, the price is being traded slightly lower at around $55.6 as the price started moving to the downside again.

LTC and EOS - Exponential growth coming to an end?Looking at the hourly chart, you can see that the price of Litecoin started increasing exponentially after an interaction with the $49.23 horizontal level which formed another steeper ascending trendline. As we have most likely seen the completion of the Y wave from the WXY correction of a higher degree the increase was seen is the start of a higher degree recovery to the upside.

From the 3rd of January when we saw a first retracement ending on a higher low so it could have been the 1st wave out of the presumed five-wave impulse to the upside. If this is true then we are most likely seeing the development of its 3rs wave but considering that the price increase from the 1.272 Fibonacci level until the 0.786 was smaller in size compared to the previous one this is yet to be validated.

Another possibility could be that we are seeing the second wave X as the correction of a higher degree could have gotten prolonged in which case the currently seen rise would be sub-divided into three waves.

EOS/USD

On the EOS chart, you can see a similar picture as in the case of Litecoin, as this cryptocurrency also experienced an exponential increase from the start of the year. From the 3rd of January when the price was sitting at $2.44 we have seen an increase of 65.82% measured to the highest point the price has been which is at around $4 made Tuesday this week.

LTC and EOS - Exponential growth coming to an end?On the hourly chart, you can see that the price is currently being traded at $3.6 and is retesting the 0 Fib level for support which is the significant ending point of the upper range and serves as a pivot point. As the price spiked inside the territory of the upper range and managed to stay above the 0 Fibonacci line it could mean that further increase is highly probable but if the price falls below the mentioned level further decrease would look more likely.

If the price is to continue increasing from here the next significant level would be at around $4.16 but if it continues decreasing from here I could fall back below $3 mark again.

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

Bitcoin Cash Analysis: Promising Resistance Breakout 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

Latest articles

Shares

Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility

October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the

Forex Analysis

Market Analysis: The American Currency Resumes Growth

The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast

Forex Analysis

EUR/USD Analysis: The Rate Updates Its Multi-month Low

Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks 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.