LTC/USD and EOS/USD close to completion of the ending wave, downturn shortly expected

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LTC/USD

From last week, when the price of Litecoin was $84.94 at its lowest point on Thursday 23rd we have seen an increase of around 40% as the price reached spiked to $122.32 at its highest, but found strong resistance at $118 below which the majority of the hourly candles closed.

LTC/USD and EOS/USD close to completion of the ending wave, downturn shortly expected

This increase was expected to play out as an ending wave from the five-wave increase we’ve seen developing from 29th of April when the price of Litecoin was sitting at $69.23. As the price reached the projected level and has done so in a five-wave manner we have likely seen the end of the increase, although the confirmation is awaited.

If we’ve have seen the end of the five-wave move it should mark the end of the 5th wave of a higher degree count which goes back to 29th of January when the price was sitting around $30.755 and is the third wave from the structure formed from 15th of December. Now that the third wave has ended or is near completion we are likely to see a downside move of the same degree which could be the start of the downtrend altogether as this increase was corrective or could be another retracement as the 4th wave before further bullish price action.

In either way, as now a move to the downside would be expected at least of around 30% from the current levels we are going to see from its momentum and depth we are to evaluate the likelihood of both possibilities.

EOS/USD

The price of EOS has increased by over 42% from last week’s analysis on Thursday 23rd when it was sitting at $5.759 as it came up to $8.229 at its highest point today. The price has encountered some strong resistance at those levels and has started forming a triangle which now appears to be an ascending one.

LTC/USD and EOS/USD close to completion of the ending wave, downturn shortly expectedAs you can see from the hourly chart, the of EOS has been in a five-wave increase from 26th of April and now that the 5th wave has started developing to the upside and came close to my target level another minor increase would be expected to the 0.382 Fibonacci level or in price terms around $9.16 before the completion of the impulsive move. We could have seen the completion of the 5th wave with the currently seen cluster being the top, but the wave structure implies that another increase should be expected, especially as the currently seen structure is an ascending one, indicating buyers pressure.

Soon we are to see the start of the higher degree move to the downside which could bring the price of EOS significantly lower, potentially back below 0.236 Fibonacci level and even lower to some of the significant resistance levels broken on the way up for a retest of support, out of which the most significant one would be at around $3.27.

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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.

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