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

FXOpen

LTC/USD

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.

LTC and EOS

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.

EOS/USD

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.

LTC and EOS

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

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