LTC/USD, EOS/USD - one more high before a retracement

FXOpen

LTC/USD

From Monday when the price of Litecoin was around $46 at the open, measured to its highest point at $58.63, we have seen an increase of 27.52%.

LTC/USD, EOS/USD - one more high before a retracement

Looking at the hourly chart, you can see that the price has entered the resistance zone once more and has managed to come up to its upper level, even going slightly above it. But since the resistance there was strong the price has started struggling to keep up its bullish momentum.

Previously as we have seen an impulsive move to the upside, which was the Y wave for the WXY correction, I don’t believe that this is the start of a new one. Most likely we are seeing a retest of the previous support for the resistance. Now this happened and I would be expecting a retracement as the price of Litecoin increased by 146.56% from 15th of December when it was around $24.

We might see another attempt for a breakout to the upside, but I wouldn’t expect it to continue for much longer as it will most likely end as a fakeout. According to my count, we have seen the end of the three-wave correction to the upside, so now either a trend continuation should occur or further prolongation of the mentioned correction in a form of the second wave X.

EOS/USD

From Monday when the price of EOS was $3.246 at its lowest point, we have seen an increase of 22.3% as the price came up to $3.97 at its highest point today.

LTC/USD, EOS/USD - one more high before a retracement

The price of EOS has started increasing after it corrected in a three-wave manned when it fell to its horizontal support at $3.2787 in a lookout for support. I’ve counted the sub-waves of the current move and it looks like it has one more wave up before it ends. The target for the expected increase would be most optimally at around 0.618 Fibonacci level but could continue on moving higher as the level wasn’t acted as a strong resistance point.

When the current upswing ends I would be expecting more downside for the price of EOS as this upward move could be the second wave out of the three wave correction of a higher degree. In this case it would mean that another corrective structure to the downside should be expected. Previously the Intermediate Y wave ended on a five-wave, so now we are most likely seeing the prolongation of the mentioned correction or the start of the trend continuation to the downside.

As the structure looks more corrective I think that more likely we are seeing the prolongation of the correction, but this will soon be validated from the depth of the expected down move.

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.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

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.

forex

Crypto CFD Trading with FXOpen

Crypto CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 40 markets 24/7
  • Trade with tight spreads and low commissions
  • Choose from 3 trading platforms: MT4, MT5, or TickTrader
Learn more

Latest articles

Gold Price Plunges After Climbing to $3,500 for the First Time
Commodities

Gold Price Plunges After Climbing to $3,500 for the First Time

As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
Shares

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report

On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.

Moreover, the price is

Market Volatility Continues to Rise
Forex Analysis

Market Volatility Continues to Rise

Amid global economic instability and escalating tariff tensions, the EUR/USD and GBP/USD currency pairs are showing strong growth. Following statements by Donald Trump regarding the potential dismissal of Federal Reserve Chair Jerome Powell, pressure on the US dollar

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.