LTC and EOS - Steep Correction Seen But Likely Ending Soon



The price of Litecoin has been decreasing from Tuesday when it reached the $93.9 level and made a decline of 24.3% measured to its lowest point today $70.6. Currently, the price is being traded slightly higher but is still in a steep downward trajectory.


On the hourly chart, you can see that the price made its yearly high above the significant horizontal level at $86.48 on Tuesday which was the completion of the 5th wave out of the five-wave impulse to the upside. The lower level at around $84 is the one that represents the previous highest peak of the year made in February. The one at $86.48 is the resistance level which served as support in August 2019, below which the price broke and was below ever since.

Now as the price revisited that level again and made a slight peek into the seller’s territory it was pushed back to the downside indicating that the sellers are very much still present at those levels. We have seen a three-wave decrease to the 1.681 Fib level where it might find support. Another possibility could be that the price has started its higher degree correction out of which we are to see a five-wave move being the A wave from the higher degree. In that case, the recovery that would be expected after the current decline ends would be corrective and another impulse to the upside would develop after.


From yesterday’s high at $3.89 the price of EOS has decreased by 26.24% today, coming to $2.88 at its current point which is the lowest. Like in the case of Litecoin the price is still in a steep downward trajectory, set to make new lows before the end of the day.


The hourly chart is showing strong seller’s pressure has been applied since yesterday after the price reached a slightly higher high than that on Tuesday when the first significant decline was made. We have seen sideways movement since Tuesday with the spike to the upside above the 1.272 Fib level and close to the next in line at around the $3.9 mark. Since the selling got activated the price made an impulsive move to the downside in a five-wave manner going below the 0.236 Fib level and is now interacting with the minor $2.88 one.

We are seeing the ending wave developing from the five-wave impulse which is most likely the C wave from the higher degree corrective count but further decline looks likely before its completion. Considering the vicinity of the 0 Fib level we might see a continuation of this descending move to it for interaction before its completion, which would lead the price to $2.775.

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 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 Analysis: Bulls Lose Progress Amid SEC Defeat Bitcoin Trading Volumes Fell to a Minimum of 4 Years BTC/USD Price Analysis: RSI Drops to Lowest Since March 2020 BTC/USD price analysis: The Price of Bitcoin Collapses by about 8% in One Day Market Analysis: XRP/USD Price Rolls Back to Important Support

Latest articles

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,


Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use


Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

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.