LTC/USD and EOS/USD – WXY correction to the downside ended

LTC/USD

From Monday’s low at $69.42 the price of Litecoin has increased by 12.86% measured to yesterday’s high at $78.37 which is the weekly high so far. Since yesterday the price has fallen to $75.8 as a minor retracement has been seen, but the price started increasing again and is currently being traded at $77.8.

On the hourly chart, you can see that the price of Litecoin ended its WXY correction to the downside, which started on 3rd of April as the resistance trendline from the corrective structure has been broken with strong momentum and I have counted the sub-wave of the structure. The price is currently retesting the horizontal resistance at the prior support around the vicinity of the W wave’s ending point proving to serve as resistance on the yesterday’s interaction as after the interaction has been made a minor pullback occurred.

Looking at the increase from Monday, I think that we are currently seeing the development of its 5th wave which could end as a truncation considering the resistance found at around $78, but the increase could continue for a bit further as there is still more room to go. In either way, since the increase is soon to end a higher degree pullback would be expected which if the price behavior is impulsive is going to be the 2nd wave of a higher degree and is likely to end as a retest of the broken descending resistance level.

The target price for the expected decrease would be around the purple interrupted level around $72.4.

EOS/USD

The price of EOS has increased by little over 10% from Monday’s low at $4.61 measured to yesterday’s high at $5.07 which is the weekly high so far. Like in the case of Litecoin the price has pulled back from yesterday slightly but started increasing immediately after and is close to the levels of the yesterday’s high at the moment as is currently being traded at $5.0199.

On the hourly chart, you can see that the price has ended its Y wave from the WXY correction that started on the of April and came down to the significant horizontal level at $4.58 for a retest of support. As the support level got retested and proved to serves as support once again an immediate correctional increase occurred before the one from Monday. The price currently above the minor horizontal support level at $4.9 and still inside the territory of the ascending channel, so this movement could still be the part of the same correctional structure but as the price moved impulsively from Monday I think that more likely we have seen the end of the correction.

If this is true, then the price of EOS is now headed for another higher degree increase above the prior high at $6. But further confirmation is awaited and will be seen either as another retest of the support level at $4.58 or would preferably end a bit higher if the increase seen from Monday is the first wave out of the higher degree impulse in which case the price cannot go below the Monday’s low level.

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.

with No Comments 397

Share: