LTC/USD and EOS/USD - more downside expected as the correction develops fully

FXOpen

LTC/USD

From last week when the price of Litecoin was sitting at $84.4 on Monday’s high, we have seen a decrease of 14.73% measured to yesterday’s low at around $71.9 which is the weekly low so far. The price has recovered slightly from yesterday’s downfall and reached $74.36 at its highest point today but again started decreasing and is currently sitting at around $73.

LTC/USD and EOS/USD - more downside expected as the correction develops fully

On the hourly chart, we can see that the price made a breakout to the downside from the expanding structure that was seen from the 12th of April and that with strong momentum. As previous to the formation of the expanding structure, I have counted a three-wave correction we are most likely seeing its continuation. The expanding structure looked like it could have been the start of the next impulsive move the upside but since a breakout to the downside occurred instead it was most likely the 4th wave out of the same correction.

If this is true, then we are seeing the beginning of the 5th wave Z from the extended count which means that now more downside should be expected as the final corrective wave develops fully. Since the price found some temporary support around $72 which isn’t a significant support level I would be expecting further downside movement below $70, potentially to $57 where the broken resistance is going to be retested for support.

EOS/USD

From last Monday’s high at $5.6268 the price of EOS has decreased by 17.22% measured to the weekly low which came in yesterday as the price came down to $4.6578. The price has recovered by 4.49% from there today and came up to $4.8616 but again another minor downfall was made with the price currently sitting at $4.733.

LTC/USD and EOS/USD - more downside expected as the correction develops fully

On the hourly chart, we can see that the price of EOS has fallen below its previous horizontal support level from the first Subminuette ABC correction around $4.95 and is currently in a downward trajectory. Some temporary support has been found but I don’t believe that this is the end of the currently seen downside movement since the C wave should develop in five waves and I have only counted three so far with the 4th one developing.

Now we are most likely going to see some upside movement which is set to retest the broken range before another lower low could be made on the 5th wave. This would be the completion of the third ABC correction which could be the end of a higher degree three-wave correction that is the 4th wave from the Minute impulse wave to the upside, which means that after it ends another and the final increase would be expected.

The price target for the expected ending point of the currently seen downside movement would be around $4.4-4.16 area in between horizontal levels from the previous minor correctional structure.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

The Nikkei Index Has Risen To a Two-Month High
Indices

The Nikkei Index Has Risen To a Two-Month High


As we reported on 26th June, analysing the Nikkei 225 chart (Japan 225 on FXOpen):

→ The price is in a significant upward trend (shown by the blue channel);

→ The price may continue to rise along the median line.

Since then,

The Price of Bitcoin Today Is Once Again Above $60k
Cryptocurrencies

The Price of Bitcoin Today Is Once Again Above $60k

Analysing the long-term BTC/USD chart from 16th May, we constructed a "roadmap" for Bitcoin's price, resembling an expanding fan consisting of a median and support levels below it, and resistance levels above it.

Reviewing the BTC/USD chart last

   Weekly Market Wrap With Gary Thomson: GBP/USD, EUR/USD, USD/JPY, XAU/USD, NVDA Stock
Financial Market News

Weekly Market Wrap With Gary Thomson: GBP/USD, EUR/USD, USD/JPY, XAU/USD, NVDA Stock

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.

  • GBP/USD Hits Four-Month
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.