From last Thursday when the price of Litecoin was sitting around $62.44 until April 2nd, the price was decreasing steadily as it has depreciated by 2.23%, coming to $61. As the price started increasing since Tuesday’s low, strong momentum was shown making the price to increase by 62.68% measured to the highest point the price has been yesterday at $99.231.
Looking at the hourly chart, we can see that the price of Litecoin increased parabolically and has come up in a five-wave manner, which in combination with the amount of the increase indicates clear impulsiveness. Now that the price ended its impulsive increase we have seen a corrective decrease of over 18% if we measure to the lowest point the price has been today at $78.155, but the hourly candle closed above the $84.7 leaving a large wick on the hourly chart.
As the buyers have caught the price again they have started another minor uptrend, but since the decrease was made below the starting point of the last, 5th wave out of the prior impulse to the upside I think that we are seeing a three wave correction after the initial decrease made. So I would be expecting another decrease with a similar momentum.
This would be correctional movement either before another impulsive wave starts or the start of a higher degree consolidation that is going to mark the end of the current bullish momentum.
From last week, when the price of EOS was sitting at $3.627 at its lowest on Monday, measured to the highest point the price has reached yesterday which is the highest point of the week, so far we have seen an increase of 65.12% as the price came up to $5.9894.
On the hourly chart, we can see that the price increased above the 0.618 Fibonacci level which served as a significant resistance point then and continued moving higher above the 1 Fibonacci level but only on a quick spike. As the price encountered resistance entering the seller’s territory a downfall occurred of around 13.92% measured to the hourly candle close, but the price spiked further down to the 0.786 Fibonacci level, resetting if for support.
As the price increased in a five-wave manner with the 5th wave extension, now we are seeing the start of the corrective stage like we have seen after the 25th of February when the previous increase was made in a five-wave manner. This could be consolidation after the price increased exponentially before further upside movement, but I think we are most likely seeing the start of a higher degree movement to the downside as the upswing ended.
In the coming period, I would be expecting to see sideways movement, corrective in nature after which the development of downtrend would start.
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 making your money go further 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.