From last Thursday when the price of Litecoin was $51.54 at its lowest point, we have seen an increase of 27.78% measured to yesterday’s highest point of $53.511.
Looking at the hourly chart, you can see that the price of Litecoin has met my target as the 5th wave fully developed. It came up to the horizontal support zone’s median line and is now serving as strong resistance. The horizontal range has been entered, but since the interaction with the median line yesterday, the price has quickly started falling and came down by 6.76% in a matter of hours, indicating that the price has indeed entered the sellers’ territory.
Considering the fact that I have counted the end of the impulsive move and that the price has come inside the resistance range, we are likely to see a retracement now. For now the entire structure has been labeled as a Minor WXY correction and if it ended on the Y wave we are now going to see a continuation. So new lows could be expected for the price of Litecoin, as this was only a minor recovery.
The recovery might not have ended as we could see a prolongation with two more waves, but in either way when it ends, I would be expecting new lows. Currently, the price has found support on the horizontal range lower level. So if the support isn’t there we could see a breakout to the downside today.
From last week’s analysis when the price of EOS was $2.75 at its lowest point we have seen an increase of 45% measured to the highest level so far, which was yesterday at around $4.
Looking at the hourly chart, you can see that the wave structure looks similar to that of Litecoin as the 5th wave to the upside was most likely ended and with it the Intermediate Y wave out of the WXY correction. Now a retracement should be expected as the price increased by 151.8% in total from the start of the correction when the price of EOS was $1.57 at its lowest point.
The downside move that is now expected could be either a prolongation of the mentioned correction. In this case we are going to see another increase before it ends as the Z wave should develop to the upside or the correction ended. That is why now we are going to see a continuation.
The 0.382 Fibonacci level would be the first significant support line so if it holds we could be seeing the second X wave. But if the price manages to go below it the most likely scenario is that the correction ended and that further lows would develop.
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.
*Cryptocurrency CFDs are not available to Retail clients in the UK