LTC and EOS - Price recovery considered corrective

FXOpen

LTC/USD

On Monday the price of Litecoin has continued it’s upward trajectory until reaching $50 mark after a sharp downfall of 11.2% has been made with the price falling down to $44.3 in a matter of hours. Since then a significant recovery has been made with the price making back to $48.1 at its highest point today around which it’s currently being traded.

LTC and EOS - Price recovery considered correctiveOn the hourly chart, you can see that we have seen an attempt for a higher high on Monday compared to May’s one slightly above the $50 mark but as the price entered the seller’s territory an impulsive downside move has been seen. From the retest of the significant horizontal level at $41.7 when the price found the support, we have seen a five-wave move to the upside which has most likely been the completion of the C wave from the three-wave ABC correction to the upside.

This is why now I believe we are to see the continuation of the descending movement whose start was indicated but the impulsive spike made on Monday being its 1st sub-wave. More so as it appears that the whole choppy ascending price action from the 16th of March has been corrective in nature and has now most likely ended. If this is true then the expected five-wave move that has been outlined on the hourly chart would only be the 1st sub-wave of a lower degree count with the price continuing to downtrend after.

Another possibility could be that another retest of the vicinity of the previous high could be made especially as the price hasn’t reached the significant horizontal resistance levels at around $51.77 before the start of the descending move but would, in that case, mean that the Monday’s downward spike hasn’t been the 1st sub-wave of the next five-wave move to the downside.

EOS/USD

Like in the case of Litecoin, the price of EOS has also been following a similar pattern as it sharply fell on Monday slightly over 10% coming from $2.89 to $2.6 at its lowest point from where it started recovering. At the moment it is being traded at $2.73 and is still in an upward trajectory.

LTC and EOS - Price recovery considered correctiveLooking at the hourly chart, you can see that the price made an attempt to go above the significant horizontal level at $2.86 but as it started entering the upper range, the seller’s pressure has been activated. This is why an impulsive move to the downside has been seen which has likely meant the beginning of the next descending impulse which is likely to lead the price of EOS back to the vicinity of the prior low at around $2.37.

There is a possibility that the current recovery could continue for a bit longer after a minor retracement and make another attempt for a breakout to the upside before the descending impulse wave starts developing but it is more likely that we have already seen it’s beginning.

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.

Latest from Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months Bitcoin Price Recovered over the Weekend, But Market Anxiety Remains Correction in Crypto Markets: BTC/USD Rate Drops to $60,000 BTC/USD Analysis: Bears Have Become More Active Near the $70,000 Level Today Is an Ethereum Update. ETH/USD Is Above $4,000

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

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. 65.68% 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.