LTC and EOS - Increase seen but for how long?

FXOpen

LTC/USD

Since the start of the week, the price of Litecoin has increased by 6.78% coming from Monday’s low at $39.613 to $42.3 at it’s highest point today. From there we have seen a decrease of 3% but a slight recovery after with the price currently being traded at $41.37.

LTC and EOS - Increase seen but for how long?Looking at the hourly chart, you can see that the price of Litecoin came up above the $41.7 horizontal level and interacted with the symmetrical triangle's resistance level where it got rejected. This pushed the price below the horizontal level and into a lower range but the price found support on the upper ascending support level which is why we are seeing minor bullish price action.

This increase could have been the completion of the corrective three-wave move to the upside after an impulsive move of a lower degree ended. In that case, the price is to continue moving to the downside below the lower ascending trendline which is the symmetrical triangle’s support level. But if we have seen a three-wave decrease prior to the bullish price action then the current structure could develop in a five-wave manner in which case it’s going to make a breakout to the upside.

The pivot point for validation of the bearish scenario would be a fall inside the territory of the presumed 2nd wave below $41.1. But if the price starts impulsively increasing from here and comes above the horizontal level at $41.73 the bullish scenario would look more likely.

EOS/USD

From it’s lowest point on Monday at $2.441 the price of EOS has increased by 8.58% measured to the highest point the price has been today which was at $2.65. Currently, it is being traded at $2.6 as a minor pullback occurred.

LTC and EOS - Increase seen but for how long?

A similar pattern can be seen on the chart of EOS as the price came up in a similar fashion. Price action formed an ascending channel with who’s resistance level we have seen an interaction today that ended as a rejection. This could be the 2nd corrective wave out of the next three-wave move to the downside or could be the next five-wave impulse. Like in the case of Litecoin we are going to look for signs of validation or invalidation, namely territory of the 2nd wave in both directions.

If the price gets above the $2.6 level a bullish possibility would look more likely, but if the starts falling below the $2.4 a bearish one would look more likely.

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.

Latest from Cryptocurrencies

The Price of Ethereum Rises Ahead of SEC Decision Bitcoin Price Hits a Month's High, Breaking Key Resistance April Became the Worst Month for BTC/USD Since November 2022 Bitcoin Price Bullish after Halving-2024 ADA Drops to Last Place in the Top 10 Cryptocurrencies

Latest articles

Commodities

Can Last Week's Gold Price Rally Be Replicated?

Gold holds a particularly exceptional status among precious metals. Whilst it does have some use in the manufacturing of consumer durables and electronic products ranging from alloy compounds in wedding rings to terminals for connecting electrical cables in audio equipment,

Forex Analysis

USD/JPY Analysis: The Market is Indecisive Near Its Peak Since May 1

As the USD/JPY chart shows today:

→ The price is in an upward trend (indicated by the blue channel) that has been relevant since the beginning of 2024.

→ On Thursday, May 23, the exchange rate nearly reached 157.2 yen

Analytical NVIDIA Stock Forecast for 2024, 2025 – 2030, and Beyond
Trader’s Tools

Analytical NVIDIA Stock Forecast for 2024, 2025 – 2030, and Beyond

NVIDIA's stock has seen remarkable growth, driven by advancements in AI, data centres, and emerging technologies. This article provides a comprehensive analysis of NVIDIA’s stock outlook for 2024, 2025, and the next decade. Join us as we explore detailed

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.