LTC/USD and EOS/USD in a corrective decrease

LTC/USD

From last Thursday when the price of Litecoin was sitting around $62.44 until April 2nd, the price was decreasing steadily as it has depreciated by 2.23%, coming to $61. As the price started increasing since Tuesday’s low, strong momentum was shown making the price to increase by 62.68% measured to the highest point the price has been yesterday at $99.231.

Looking at the hourly chart, we can see that the price of Litecoin increased parabolically and has come up in a five-wave manner, which in combination with the amount of the increase indicates clear impulsiveness. Now that the price ended its impulsive increase we have seen a corrective decrease of over 18% if we measure to the lowest point the price has been today at $78.155, but the hourly candle closed above the $84.7 leaving a large wick on the hourly chart.

As the buyers have caught the price again they have started another minor uptrend, but since the decrease was made below the starting point of the last, 5th wave out of the prior impulse to the upside I think that we are seeing a three wave correction after the initial decrease made. So I would be expecting another decrease with a similar momentum.

This would be correctional movement either before another impulsive wave starts or the start of a higher degree consolidation that is going to mark the end of the current bullish momentum.

EOS/USD

From last week, when the price of EOS was sitting at $3.627 at its lowest on Monday, measured to the highest point the price has reached yesterday which is the highest point of the week, so far we have seen an increase of 65.12% as the price came up to $5.9894.

On the hourly chart, we can see that the price increased above the 0.618 Fibonacci level which served as a significant resistance point then and continued moving higher above the 1 Fibonacci level but only on a quick spike. As the price encountered resistance entering the seller’s territory a downfall occurred of around 13.92% measured to the hourly candle close, but the price spiked further down to the 0.786 Fibonacci level, resetting if for support.

As the price increased in a five-wave manner with the 5th wave extension, now we are seeing the start of the corrective stage like we have seen after the 25th of February when the previous increase was made in a five-wave manner. This could be consolidation after the price increased exponentially before further upside movement, but I think we are most likely seeing the start of a higher degree movement to the downside as the upswing ended.

In the coming period, I would be expecting to see sideways movement, corrective in nature after which the development of downtrend would start.

Nikola Lazić

Expertise: Cryptocurrencies, Technical analysis, Elliot waves, Fibonacci Nikola has a bachelor degree in Sociology, which gives him the edge in the financial market, knowing a lot about herd mentality. That is why he uses Elliot wave principles mostly, in combination with Fibonacci levels. He started learning more about financial markets back in 2015 and is now a full-time trader. As an anarcho-capitalist, he fully supports the vision of decentralized future offered by cryptocurrencies, that's why his attention and interest are mostly focused on them. His analysis has been praised by some of the most influential people from the cryptocurrency scene, like Jeff Berwick, the founder of The Dollar Vigilante Newsletter, Vit Jedlicka, the president of Liberland, and other trader colleagues.

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