LTC and EOS – Undergoing Correction

LTC/USD

On Monday the price of Litecoin has been traded at $55.617 as it managed to make up for some losses made on Sunday’s spiked to the $51.7 area and continued increasing until it reached $59.86 on the same day. From there we have seen another decrease with a higher low indicating an uptrend but then the price came up again to the same level and found resistance there making the same high for the 2nd time. Now the price is currently being traded at $58.159 as it made another higher low and is likely to break the prior resistance but we are yet to see if the increase occurs or have we seen the completion of the corrective upward move before another downturn.

On the hourly chart, you can see that the price action made a similar fractal, like in the lower degree presumed 3rd wave from the prior count but already made a three-wave increase. If this was the completion of the corrective upside movement ending on the 0.618 Fibonacci level then we are currently seeing the 2nd wave out of the next move to the downside with the price continuing its downfall shortly.

However, more likely we are yet to see the development of the 3rd wave out of the corrective upside move as the one prior to this was a minor degree count in which case a higher high to the 0.786 Fibonacci level would be expected. But as this is considered the wave 4 of a higher degree count when it ends another impulsive move to the downside would be expected similar to one we have seen on Sunday.

EOS/USD

The price of EOS has impulsively fallen on Sunday following the market’s movements and has made a slight recovery since but hasn’t managed to make up much of the loss like the other cryptos did and especially the major ones. It was being traded at $2.92 on Mondays and from there made an increase of 6.54% coming to $3.11 at its highest point. From there we have seen a continuation for the sideways movement as it broke out from the local ascending channel and is now hovering around its medial point at $3.

On the hourly chart, we can see that the price has made a corrective sideways movement with the wave structure implying its potential completion. This is why in the case of EOS we can see that the market has corrected after an impulsive move to the downside and it has a high probability of another impulsive decrease coming shortly after. If the price correction ended on the Y wave from the lower degree count we could be seeing the beginning of the next move to the downside but another possibility would be that further corrective upside movement will be seen before this occurs.

Unlike in the case of Litecoin where this expected impulse to the downside is labeled as the 4th wave of a higher degree on the price chart of EOS I have presented a different outlook in which could have seen a potential ending of the bullish impulse and an even higher degree move to the downside starting in which case the expected impulse would be its 3rd wave out of the five-wave move. That means that we can potentially see the development of the downtrend from here but this is to be validated from the momentum behind the expected price decrease.

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