LTC and EOS: Impulsive Downside Move Seen, Correction Still Developing



On yesterday’s open the price of Litecoin has retesting its peak from the previous increase and was sitting at $64 area but found strong resistance there and the selling was activated and it fell by 11.77% measured to its lowest point today at $56.73. Currently, the price is hovering above $57.5 mark as a minor recovery has been made and is in an upward trajectory.


On the hourly chart, we can see that the price came down to retest the 0.382 Fibonacci level where it found support and made a bounce. It has made a decrease in a five-wave manner which is why now we are likely to see a corrective three-wave one as a retest of some of the broken support levels for validation of resistance.

As we have seen a three-wave increase previously that pushed the price from its higher degree higher low at $54.8 from the 0.236 Fib level and now a lower degree five-wave move to the downside that pushed the price of Litecoin below the origin of the last increase, means that the increase was still corrective in nature and is most likely the “connector” or the second wave X from the WXYXZ correction.

This is why the currently seen downfall is accounted as the 1st sub-wave of the three-wave ABC to the downside which is the Z wave of the higher degree count and would be expected to move the prior down to the 0 Fib level or the ending point of the 4th wave from the previous higher degree impulse.


From yesterday’s open at around $3.55 the price of EOS has decreased by 17.28% as it fell to $2.94 at its lowest point today. At the moment it is being traded just above the $3 mark and has started to move to the upside but made a minor retracement to is first horizontal support.


Looking at the hourly chart, we can see that an impulsive move to the downside was made in a five-wave manner like in the case of Litecoin after a slight runup from the previous interaction with the 0.236 Fibonacci level with whom the price made yet another interaction on the current downfall but only as a quick spike. This could indicate that the support has slightly risen as the price quickly snapped back above the 0.382 Fib level after it dipped below it, but is currently retesting the Fib level for support from which we are to see if the assumption is valid.

In either way, since we have seen an impulsive decline from yesterday’s low the current minor upward move is considered corrective in nature and is likely to end with another push to the downside that could bring the price of EOS below the 0 Fib level at $2.775

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

Market Analysis: Results of Black Friday in Financial Markets BTC/USD Analysis: Bulls Preparing New Assault on 37,500 Level? BTC/USD Analysis: Bears Aggressively Defending 37,500 Level BTC/USD Analysis: JP Morgan Analysts Warn of a Possible Correction Market Analysis: ETH/USD Growing Rapidly on News from BlackRock

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Falls to Its Lowest Level Since Mid-August

EUR/USDThe euro strengthened on Monday as the dollar fell on expectations that the Federal Reserve will not raise rates again. Traders this week will have to weigh data on how the US economy performed in the third quarter, as


NASDAQ Composite Index Heralds a Fine Time for Tech Stocks

In the ever-fluctuating landscape of financial markets, the NASDAQ exchange, home to some of the world's most prominent technology stocks, has been a bastion of volatility over the past two years. This week, the NASDAQ index continues its upward trajectory,

Trader’s Tools

Fibonacci Retracement Strategies

Fibonacci retracements are a cornerstone in the toolkit of many traders, offering a mathematical approach to identifying potential areas where reversals may occur. This article delves into the intricacies of using Fibonacci retracements, covering everything from basic understanding to strategies

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.