From last week’s high made on Monday when the price of Litecoin was sitting at $45.88, we have seen a decrease to the significant horizontal support level at $41.71 where it found support and consequently made a bounce from it and came to the $44.6. Since then we have seen another two retests of the mentioned horizontal level finding support there both times and is now again in the upward trajectory but still lower then on the first bounce.
As you can see by looking at the hourly chart the price is close to the vicinity of the prior high and is expected to continue moving exactly to it as a retest of those levels. The first bounce after a test of the horizontal support is considered to be the A wave from the upward ABC correction that started developing as the 2nd wave of the lower degree from the descending higher degree one.
This is why after the completion of the current upward movement which is considered to be the C wave I would be expecting a breakout to the downside below the significant horizontal level. It is still unclear where the price could end it decreases as there are multiple support points, but if we take a clue from the spiky impulse that was made on the 1oth of May whose continuation this expected movement would be we are to see a significant decrease of around 15% which would bring the price of Litecoin to around the $38 area.
The price of EOS has been following the same price pattern as in the case of LTC as we have seen a decrease of around $11.8% from last Monday’s high after which an increase was made and a couple of retests around the same vicinity before the start of the current upward movement.
On the hourly chart, you can see that last Monday’s decline was made in a five-wave manner which appears to be the starting wave of the next descending wave after it corrected to the upside in a three-wave manner. From the current price point, an increase would be expected to $2.65 at the furthest as we have most likely already seen the development of three waves from the five-wave move that is the C wave. At the most optimal we are going to see a retest of the prior high which would around $2.63.
But after this increase end a breakout would be expected to the downside below the low made on the 1oth of May, or around its vicinity which is at $2.3.