LTC and EOS - Recovery expected to continue

FXOpen

LTC/USD

From last Saturday when the price of Litecoin was sitting on its highest at around $49.23 we have seen a decrease of 20.32% measured to the lowest point the price has been at $39.23 made on Monday. Since the start of the week, recovery has started with the price reaching $43.75 at it’s highest yesterday but is currently being traded slightly lower and still above the $43 mark.

LTC and EOS - Recovery expected to continue

Looking at the hourly chart, you can see that the price is still in an upward trajectory but is struggling to keep up the bullish momentum above the $43 level as it reached the horizontal resistance from the upper range. Before this recovery, we have seen a sharp decrease as a breakout from the descending channel in which it was since the 29th of May. This descending channel was most likely the first corrective wave out of the next move to the downside as the 5th wave from the upward impulse ended on the 30th.

The upward move that followed the formation of the descending channel pushed the price back to retest the $49.23 level where it got rejected and resulted in the mentioned sharp impulsive decline which ended on Monday this week when the price was at it’s lowest in a while. This is why I believe we are now seeing the development of another ABC correction to the upside on a lower degree count.

If this is true, then further high could be expected after some minor sideways movement for the price to establish support above the $43 mark but after the B wave development, another five-wave impulse to the upside can be seen for the price to at least retest the $45.6 level but more likely go a bit higher to retest the $47.1 horizontal support level which was made in the descending channel.

EOS/USD

The price of EOS has decreased by 19.66% measured from its last week’s high at $2.83 made on Saturday to the lowest point this week at $2.27 made on Monday. From there we have seen an increase of 12.4% as recovery took place with the price currently being traded at $2.53 and is still in an upward trajectory.

LTC and EOS - Recovery expected to continue

On the hourly chart, you can see that the price made a higher high compared to the one at $2.4 in a steeper more parabolic manner which could be the development of the 3rd wave of the lower degree count which is why another minor one would be expected. This expected increase would be the ending point of the C wave from the ABC correction to the upside which most likely started developing after the previous descending impulse wave ended on Monday.

Like in the case of Litecoin after the completion of this upward move which is considered to be corrective a move to the downside would be expected as the downtrend continuation should occur. The C wave could bring the price to retest some of the broken horizontal levels for resistance out of which the first in line would be at around $2.67.

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

Bitcoin Finds Support: Will It Last? Bitcoin Price Losing Correlation with Stock Market Kiyosaki Predicts: Bitcoin at $350k in August 2024. Realistic? The Price of Ethereum Rises Ahead of SEC Decision Bitcoin Price Hits a Month's High, Breaking Key Resistance

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • Nasdaq 100 Index Reaches
Analytical META Stock Predictions for 2024, 2025-2030, and Beyond
Trader’s Tools

Analytical META Stock Predictions for 2024, 2025-2030, and Beyond

Meta Platforms, Inc., formerly known as Facebook, is a leading technology company renowned for its social media and virtual reality innovations. This article provides a detailed analysis of Meta's stock performance, future analytical projections for 2024 to 2030, and the

Commodities

Natural Gas Price: Bullish Trend Weakens

Forecasts of a hotter summer, published during April and May, led to a sustained bullish trend in the natural gas market, as this commodity is heavily used for air conditioning.

Specifically:
→ The XNG/USD chart indicates that from 1st April

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.