Last Updated on June 17, 2021
The price of Litecoin has been in recovery from the 8th of June when it fell to around $146 at its lowest point. From there the price went on to form a higher low and higher high to $180 area, breaking out from the symmetrical triangle in which it was since the 27th of May. Today we have seen a pullback as a retest of the prior resistance for support, and as support was present we have seen a bounce from there. Currently, the price is being traded at $172.5 area and is still moving in an upward trajectory.
Looking at the hourly chart you can see that the price of Litecoin most likely ended its corrective stage on the 8th of June. This could have been an ABC correction from the 27th of May when the first impulsive move was seen. If so, then from the 8th we have seen the start of another impulse wave to the upside. Another possibility in a positive scenario could be that the price made a five-wave correction count ABCDE to the 12th of June from where the next impulse started. In that case the price has made a three-wave increase with the today seen pullback being its 4th wave out of the five-wave impulse.
Now in both of these positive scenarios, the price would be expected to go higher to the upside in an impulsive manner and make a higher high compared to the one on the 27th of May when the price reached $208.89.
However, there is a negative scenario still in play. If the price ended its three-wave ABC correction on the 8th of June the next structure could end as a three-wave correction to the upside before another downfall. In that case, the price could continue its downward trajectory in the short-term and fall back below the triangle’s resistance level and also the starting point of the prior increase at about $154.3.
The price of EOS has shown a similar pattern as we have seen a breakout from the triangle in which it was since the 27th of May. The price fell to $4.58 at its lowest point on the 8th and again on the 12th from where another rise was seen but to the same levels on the 15th like on the 12th which was at $5.44. A pullback was seen to $4.83 today but the price is once again in an upward trajectory and has made it back above $5.
The same applies to the chart of EOS as on the chart of Litecoin. We could have seen the start of another move to the upside, but there is still a possibility that from the 8th we have seen another ABC correction to the upside before another downfall.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.
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