On Monday’s open, the price of Litecoin has been trading at $70.278 and from there increased by 14.2% measured to the weekly high made yesterday at $80.26 at its highest point. Since yesterday’s high, we’ve seen a decrease of around 9% as the price fell to $72.96 at its lowest point today but is currently being traded at $74.5.
Looking at the hourly chart, we can see that the price of Litecoin broke out to the upside from the horizontal resistance level at $72.4 which is why today we’ve likely seen a retest of the level for support. Prior to the breakout, the price of has been ranging in a horizontal manner but is overall on the rise since the start of September.
As the price of Litecoin came down to $62.4 on the 30th of August from the yearly high at $146 we could be seeing the start of a larger recovery which will soon be validated if the price finds support on the current interaction with the minor horizontal level and continues moving to the upside again. This looks likely as we have seen the price moving in a five-wave manner to the downside and it looks like the decrease has ended which is why now we could see a recovery all the way up to the significant horizontal support at $114 but that will depend on the momentum behind the increase.
The expected recovery could still be corrective in nature after the downtrend would continue which will be seen by the wave structure which is set to develop.
The price of EOS has been increasing since Monday but the increase was a minor one as the price came up only by 5.89% from Monday’s low at $3.98 until Tuesday when it came up to $4.21 at its highest point. From Tuesday we have seen a decrease of 8.43% measured to the current level on which the price is being traded which is at $3.86.
On the hourly chart, we can see that since the start of September the price has been moving to the upside and broke out from the descending channel. The price increase in a five-wave manner which is the first sign of impulsiveness but as the 5th wave ended we are now seeing the first retracement starting to develop to the downside. If this is the start of the higher degree recovery the price could now come down to the Septembers low and retest the $3.27 level before continuing its upward trajectory but it could very well find support on a higher level.
If the price finds support above the $3.27 level and starts moving the upside again in an impulsive manner the possibility of the starting recovery would be higher. But if the price continues moving below the level and enters a lower range the price decrease is likely to continue.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — 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.