LTC and EOS - Resistance seen but for how long?
LTC/USD
The price of Litecoin has been increasing in the past week, and from last Thursday when it was sitting at $141.27 at its lowest, we have seen an increase of 37.8$ measured to its highest point yesterday at $194.31. Since then the price made a pullback to $170.54 but is again back in an upward trajectory, currently sitting at $188.
On the hourly chart, we can see that the price broke the prior high made on the 10th of January when the price of Litecoin was sitting at $185.58. This confirmed the impulsiveness behind the move and that the previous correction ended at $118. We have seen the development of the 3rd sub-wave of the higher degree impulse which is why further upside would be expected. However if yesterday’s high was the end of the 3rd wave, now the price might be set for a local correction.
Wave 4 should develop optimally to the 0.382 Fibonacci level which would bring the price of Litecoin to $165. But when the price tested prior resistance for support and confirms the bullish interest it is likely to continue moving past yesterday’s high and end around $230 before the completion of this five-wave move.
EOS/USD
Like in the case of Litecoin, the price of EOS has made a significant rise since last Thursday. On the 4th of February, the price was being traded just below $3 and from there it made an impulsive move to just below $5. This rise of around 50% pullback was made to the $3.5 zone but the price made ar recovery and is now in an upward trajectory, currently sitting at $4.2965.
Looking at the hourly chart, you can see that the price made a parabolic rise which is why we have seen a corrective decrease of 17.6%. This could have indicated that the momentum has encountered the first significant seller’s zone above the prior high and is why now it is revisiting those levels for confirmation. Now we could expect to see some sideways movement if today’s recovery was continuo of the corrective drop.
Another possibility would be that today, we have seen the start of the next lower degree impulse which is set to exceed yesterday’s high. This would be validated if the price manages to go above the 1.272 Fib level on the current rise. If it however finds resistance there again, a double top could be form and the rejection could push the price back below $4 again. In either way further upside would be expected for the price of EOS.
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.
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