The price of Litecoin has reached $282 at its highest point yesterday and after a minor retracement made it back to that area again today. Currently, it is being traded at $271.89 and is looking like it’s moving to the downside
On the hourly chart, we can see that the price of Litecoin was in an uptrend from the 25th of March when it was traded at $167. Measured to its highest point yesterday that was an increase of 68.8% but what more significant is that it made a higher high compared to the one on the 20th of February. This is why the increase from the 25th is considered the 3rd wave from the higher degree five-wave count. The wave structure implies that it might have ended and considering that we have seen the formation of the ascending channel from the start of the year now a pullback all the way down to its support might occur.
There is still a bit more room to the upside for proper interaction with the channel’s resistance and more so if the level is adjusted to encompass February’s high. However, this structure appears to be an ending diagonal as the 5th wave from the higher degree impulse which is why further interactions with its level would be expected before the completion, meaning we could likely see the price of Litecoin back to $220 area, before another higher high to $330 area.
From Monday when the price of EOS has been traded at $6.329 we have seen an increase of 27.11% as it came up to $8.04 at its highest point yesterday. From there a significant move to the downside was seen to around $7 but after a spike to the downside, the price snapped back to $7.78. Now it is being traded slightly lower as it’s consolidating.
Looking at the hourly chart, you can see that from the start of April we have seen the formation of the ascending channel after an impulsive rise from below $4. This could indicate that the price has entered its ending wave out of the higher degree five-wave count. In that case, the ascending structure would be an ending diagonal of some sort even though it appears channeling at the moment. Similarly like in the case of Litecoin we could be seeing now a move to the support level of the ascending structure in which case the price of EOS would fall back slightly below $7 again, but still, a higher high would be expected.
If the price continues moving to the downside and falls below the $7.2 area it would indicate that the price isn’t going for a higher high on this swing, but is going to look for support first before it could continue its upward trajectory again.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further with FXOpen.
*Cryptocurrency CFDs are not available to Retail clients in the UK