LTC/USD and EOS/USD – more downside expected as the correction develops fully

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LTC/USD

From last week when the price of Litecoin was sitting at $84.4 on Monday’s high, we have seen a decrease of 14.73% measured to yesterday’s low at around $71.9 which is the weekly low so far. The price has recovered slightly from yesterday’s downfall and reached $74.36 at its highest point today but again started decreasing and is currently sitting at around $73.

On the hourly chart, we can see that the price made a breakout to the downside from the expanding structure that was seen from the 12th of April and that with strong momentum. As previous to the formation of the expanding structure, I have counted a three-wave correction we are most likely seeing its continuation. The expanding structure looked like it could have been the start of the next impulsive move the upside but since a breakout to the downside occurred instead it was most likely the 4th wave out of the same correction.

If this is true, then we are seeing the beginning of the 5th wave Z from the extended count which means that now more downside should be expected as the final corrective wave develops fully. Since the price found some temporary support around $72 which isn’t a significant support level I would be expecting further downside movement below $70, potentially to $57 where the broken resistance is going to be retested for support.

EOS/USD

From last Monday’s high at $5.6268 the price of EOS has decreased by 17.22% measured to the weekly low which came in yesterday as the price came down to $4.6578. The price has recovered by 4.49% from there today and came up to $4.8616 but again another minor downfall was made with the price currently sitting at $4.733.

On the hourly chart, we can see that the price of EOS has fallen below its previous horizontal support level from the first Subminuette ABC correction around $4.95 and is currently in a downward trajectory. Some temporary support has been found but I don’t believe that this is the end of the currently seen downside movement since the C wave should develop in five waves and I have only counted three so far with the 4th one developing.

Now we are most likely going to see some upside movement which is set to retest the broken range before another lower low could be made on the 5th wave. This would be the completion of the third ABC correction which could be the end of a higher degree three-wave correction that is the 4th wave from the Minute impulse wave to the upside, which means that after it ends another and the final increase would be expected.

The price target for the expected ending point of the currently seen downside movement would be around $4.4-4.16 area in between horizontal levels from the previous minor correctional structure.

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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