LTC/USD

From last weeks high at $105.3 the price of Litecoin has decreased by 16.21% measured to the lowest point the price has yesterday which is at $87.994. Since yesterday’s low, we’ve seen an increase of 10.31% as the price came up to $97.127 at its highest point today around which it is currently being traded.

On the hourly chart, you can see that the price came down to the significant horizontal support level yesterday but there hasn’t been an interaction even though the price quickly spiked to the downside around the open before another upturn occurred. This indicates buyers presence at those levels confirming that the area serves as a support.

The 16.21% decrease is presumed to be the 2nd wave out of the starting upward move and considering that the price started increasing again after it spiked to the significant support level it likely ended. This means that the increase seen from yesterday is its 3rd wave which is set to exceed the prior high at around $105 and potentially go back inside the resistance zone above $109.356 but I wouldn’t expect it to go above $122 in one go.

As the price started increasing again after a complex WXYXZ correction ended we could be seeing the start of the five-wave move to the upside as the correction has been ended but there is another possibility that we could be seeing a three-wave correction to the upside. This would be validated from the momentum of the expected increase and its wave structure.

EOS/USD

From last week’s low at $3.574 the price of EOS has increased by 30.79% as it came up to $4.674 at its highest point today around which it is currently being traded. On the hourly chart, you can see that the price of EOS came up to the broken horizontal support level and is currently retesting it for resistance. The horizontal level is intersecting the ascending one and a breakout occurred exactly on the intersection validating the importance of the level. We are currently seeing an ascending structure which is applying pressure from the downside attempting to breakout and I believe that a breakout to the upside would occur.

We could see a minor pullback to the $4.16 level before a breakout as the price looks for strong support before it can continue moving past the strong resistance point. As the Y wave ended from the previous correction we are most likely seeing the start of the recovery from last Wednesday and with the price action completion only its two waves the current third one which already exceeded the prior high would be expected to continue further as the 3rd wave develops fully.

The price could go to the significant support zone at $5.8-5.5 before the completion of the 3rd wave and end as a retest of the broken support range.

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.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

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.