LTC/USD and EOS/USD are showing weakness with downside expected

FXOpen

LTC/USD

From Monday’s open when the price of Litecoin was at its highest point in a while as it has reached $64.111, the price has decreased by 8.92% measured to its lowest point today at $58.38.

LTC/USD and EOS/USD are showing weakness with downside expected

On the hourly chart, you can see that the price of Litecoin interacted with the resistance line from the expanding triangle which is viewed as an ending diagonal on the 5th impulse wave. Now that it has ended and another retest of resistance occurred the price started moving to the downside and is currently retesting the support at the prior range resistance.  Judging by the momentum I don’t believe that the level is going to serve as support for much longer as it is only a minor support/resistance point and considering that the price has moved above the resistance zone I retest of its levels for support would be more likely.

If the 5th wave ended the price is set to go below the resistance zone again as the Intermediate Y wave ended which is why from here more downside would be expected for the price of Litecoin.

EOS/USD

From Monday’s open at $3.8525 we have seen a decrease of 6.08% measured to the lowest point the price has been today at $3.618 around which the price is currently being traded and is in a downward trajectory.

LTC/USD and EOS/USD are showing weakness with downside expected

On the hourly chart, you can see that the price of EOS is back to around 0.5 Fibonacci level where it is searching for support and is currently below it. The price of EOS has some more upside potential before we see an impulsive decrease to the downside like presumably started in the case of Bitcoin but we could also be seeing the start of the next structure to the downside. If the price continues moving upward as this was the 4th wave out of the five-wave move to the upside I would expect to see the price of EOS around $4.162 before the start of the impulsive decrease.

The C wave would develop to the upside as the price is set to complete the five-wave move but if this previous wave ended as a three wave move then we are already seeing the start of the next move to the downside.

This would soon be validated by the support or the lack of support around the current levels as the 4th wave can’t enter the territory of the second wave and the price has come to its resistance levels, so if it continues moving lower the count would be invalidated which would mean that the third correction or an impulse wave to the downside has most likely started.

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

Bitcoin Finds Support: Will It Last? Bitcoin Price Losing Correlation with Stock Market Kiyosaki Predicts: Bitcoin at $350k in August 2024. Realistic? The Price of Ethereum Rises Ahead of SEC Decision Bitcoin Price Hits a Month's High, Breaking Key Resistance

Latest articles

Forex Analysis

USD/CAD Rate Reaches Significant Support Level

On June 12, we wrote about bearish signs observed on the USD/CAD chart, pointing to the prospect of USD weakening.

Since then, the USD/CAD rate has decreased by approximately 0.75% and has reached an important support level,

Indices

Nasdaq 100 Index Failed to Hold Above 20,000 Points

On 18th June, we reported that the Nasdaq 100 (US Tech 100 mini on FXOpen) market had recorded a historic high by surpassing the psychological level of 20,000.

At that time, we pointed to the upper line of the

Forex Analysis

Dollar Declines: How Deep Could the Correction Be?

By the end of last week, the American currency traded rather mixed:

  • The USD/JPY currency pair strengthened by more than 200 pips and almost tested the significant resistance level at 160.00.
  • The USD/CAD pair failed to break
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.