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

Contents

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.

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