LTC and EOS - Recovery soon expected but decline is yet to end

FXOpen

LTC/USD

Last Thursday the price of Litecoin was sitting at its lowest levels the price has been since 29th of April as it was $71.1 but from there started recovering until Monday when it came up to $78.87 at its highest. From Monday we’ve seen another decrease with the price making a slightly lower low compared to the last week’s one but is currently sitting at $73.867.

LTC and EOS - Recovery soon expected but decline is yet to endLooking at the hourly chart, you can see that the price almost came down to $69 horizontal level which is the support level of the starting point on the previous increase. If that previous increase was the 5th wave from the higher degree uptrend move this means that price has almost retraced to the 4th wave’s ending point. As we are seeing the development of the triangle structure and the price is now retesting its resistance level another rejection might likely occur with the price getting down again for proper interaction with the mentioned horizontal level.

This interaction would be expected to end as a test of the level for support and considering that the wave structure implies that we are seeing the ending wave out of the last downside move this is likely to end as a bounce from the horizontal level with the price action forming an ending diagonal. Especially considering the amount of the seen decrease it appears that the downfall should shortly end which is why the horizontal level would serve as an indication point from which a recovery could be triggered.

If the price finds support recovery to the upside would be expected potentially all the way up to $109.356 or at least to the $86 area where the significant horizontal support zone was broken. But if the price continues decreasing past the level interaction with the next one would look more likely which would be at around $57.5.

EOS/USD

Last week on Thursday the price of EOS was sitting at $3.31 at its lowest spike from where we’ve seen a 14% recovery until Monday when the price reached $3.78 at its highest. But from Monday we have seen another downtrend developing with the price moving back to the last week’s low vicinity above which it is currently being traded at $3.588.

LTC and EOS - Recovery soon expected but decline is yet to endOn the hourly chart, you can see that after a breakout from the horizontal range above $4.16 a lower low has been made compared to the ending point of the corrective wave Y which could indicate that the correction got prolonged by two more waves similarly like in the case of Litecoin. The price has gotten close the horizontal level at $3.27 but there hasn’t been an interaction made but that might change soon as the price is retesting the minor horizontal resistance level and it experiencing seller’s pressure.

As we’ve seen a decrease of 10.1% from Monday’s high the recovery might start but the wave structure is implying that in either way another lower low should be expected before the start of a meaningful recovery. If the WXY correction got prolonged by two more waves, the horizontal range would have been the second wave X while the downside move seen after as a breakout is the Z wave. This means that recovery is to soon be expected but there aren’t any signs of a reversal coming soon which is why another low would look more likely. If the price continues moving to the downside the next price target for the ending point of the Z wave could be around $2.86 level, while we could see an even further decline to $2 area.

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

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price

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. Read the latest news

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond
Trader’s Tools

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond

Tesla's stock has experienced significant volatility since its IPO in 2010, driven by its significant technological advancements and status as a leading electric vehicle producer. This article explores Tesla's recent price history, analyses its outlook for 2024 and 2025, and

Commodities

Gold Price Drops Over 3.6% in 2 Days

The price of gold has fallen by more than 3.6% over 2 days, as indicated by today's XAU/USD chart. The day before yesterday, at the opening of the daily candle, the price of gold was $2421 per ounce,

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.