LTC and EOS - Further downside more likely

FXOpen

LTC/USD

The price of Litecoin has been in a decline from Saturday’s high when it came up to  $247. From there we have seen a downfall of 35.8% measured to its lowest point of the week made on Tuesday at $158.56. We have seen a minor recovery as the price made a rise to the $190 area but has since pulled back again and is currently sitting just below $180.

LTC and EOS

Looking at the hourly chart, you can see that the price of Litecoin has fallen back to the 0.236 Fib level which was the horizontal resistance point of the prior high made on the 10th of January. It dipped below it which could serve as an early indication that the previous uptrend ended, but it managed to go back above it and is currently testing it for support. If the support gets validated at these levels we could see further uptrend continuation of the impulse wave that started on the 27th of January.

However, if the price continues moving to the downside again and makes it into the lower range it would be a stronger indication that the price of Litecoin has ended its previous impulsive move and is now headed towards a correction of the higher degree out of which the downfall from last Saturday was only its 1st sub-wave.

EOS/USD

From Tuesday’s low at $3.18 the price of EOS has recovered by 29% as it came up to $4,107 at its highest point but started decreasing again and is currently sitting at around $3.935 moving sideways.

LTC and EOS

On the hourly chart, we can see that the price of EOS is testing the 1 Fib level for resistance at the moment and is being traded on its lower side. This could be the continuation of the downward five-wave impulse from the 20th of February when it started its 3rd wave to the downside after the prior increase ended. If this is the C wave from the higher degree ABC then it should be sub-divided into a five-wave impulse.

As the price could have ended its 4th wave out of the mentioned five-wave impusle, now the 5th one would be expected to develop, potentially pushing the price back to the 0.382 Fib level at around $2.7. The price should then proceed to establish support and continue moving to the upside again as the uptrend of the higher degree would continue but it could also be set for a corrective recovery before further downside continuation which we will see after the interaction with the expected support zone at around $2.7.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.

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