LTC and EOS - Starting impulse or a C wave?



From last Wednesday when the price of Litecoin fell to $36.79 at its lowest point, measured to Monday’s high at $42.56 we have seen an increase of 15.68%. Since Monday’s high the price has been in a downward trajectory and is currently being traded around its lowest of the week which is at around $40.

LTC and EOS - Starting impulse or a C wave?Looking at the hourly chart, you can see that the price broke down from the descending triangle last week with strong bearish momentum indicating impulsiveness. The price fell below 1.618 Fibonacci level but as it entered the buyer’s territory, buying was activated and we have seen a recovery close to the vicinity of the resistance level from the descending triangle. This could be interpreted as a retest of its support for resistance especially considering that the price came only for a short while above $41.7 horizontal level. Resistance was found as seen on the chart, which is why another downside move has been seen.

This could be a minor retracement before the next wave to the upside starts, considering that we have seen a five-wave increase. But considering that the price broke out from the descending triangle and formed another five-wave move to the upside we could have seen the C wave out of the ABC to the upside with the prior ascending triangle being its A wave.

From the depth of the current retracement and the momentum of the next move to the upside, we are going to evaluate these possibilities.


Like in the case of Litecoin, the price of EOS has recovered significantly from last Wednesday when it was sitting at $2.19 at its lowest point, coming to $2.6 at its highest on Monday this week which was an increase of 18.6%. Currently, the price is being traded at around $2.49 as it was in a downward trajectory since the start of the week.

LTC and EOS - Starting impulse or a C wave?

As you can see by looking at the hourly chart, I was expecting this spike to the upside but as the beginning of the larger recovery. A five-wave move to the upside developed which could be the 1st sub-wave of the higher degree impulse wave. If this is true then the decline seen from Monday is its 2nd wave developing which can push the price all the way back to the prior low although unlikely.

More likely we are to see a retest of the prior higher low at 1.272 Fib level before further uptrend continuation if this is a starting impulse. If the price, however, goes below the 1.272 Fibonacci level it will indicate that the spike seen from last Wednesday till Monday this week could have been the C wave out of the ABC to the upside with further lows ahead.

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

BTC/USD Price Exceeds $60,000 Per Coin Bitcoin Price Risks Not Staying above $50k Ethereum Price Falls after Exceeding $3,000 Ethereum Price Exceeds $2,800 Bitcoin Price Exceeds Psychological Level of $50k

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

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. European Stock Markets on


Price of Gold Briefly Exceeded $2,050 per Ounce

In addition to new records in the stock markets, the reaction to yesterday's news about inflation in the US was also a decrease in government bond yields and a rapid rise in the price of gold — the cost of XAU/


Nasdaq-100 Price Hits All-time High after 4 Straight Months of Gains

The Nasdaq-100 index is holding above 18,000 today following yesterday's bullish momentum, fueled by inflation news. The PCE consumer spending index amounted to 0.4% on a monthly basis, which was in line with analysts' expectations. A year ago,

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. 65.68% 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.