From last Saturday when the price of Litecoin was sitting on its highest at around $49.23 we have seen a decrease of 20.32% measured to the lowest point the price has been at $39.23 made on Monday. Since the start of the week, recovery has started with the price reaching $43.75 at it’s highest yesterday but is currently being traded slightly lower and still above the $43 mark.
Looking at the hourly chart, you can see that the price is still in an upward trajectory but is struggling to keep up the bullish momentum above the $43 level as it reached the horizontal resistance from the upper range. Before this recovery, we have seen a sharp decrease as a breakout from the descending channel in which it was since the 29th of May. This descending channel was most likely the first corrective wave out of the next move to the downside as the 5th wave from the upward impulse ended on the 30th.
The upward move that followed the formation of the descending channel pushed the price back to retest the $49.23 level where it got rejected and resulted in the mentioned sharp impulsive decline which ended on Monday this week when the price was at it’s lowest in a while. This is why I believe we are now seeing the development of another ABC correction to the upside on a lower degree count.
If this is true, then further high could be expected after some minor sideways movement for the price to establish support above the $43 mark but after the B wave development, another five-wave impulse to the upside can be seen for the price to at least retest the $45.6 level but more likely go a bit higher to retest the $47.1 horizontal support level which was made in the descending channel.
The price of EOS has decreased by 19.66% measured from its last week’s high at $2.83 made on Saturday to the lowest point this week at $2.27 made on Monday. From there we have seen an increase of 12.4% as recovery took place with the price currently being traded at $2.53 and is still in an upward trajectory.
On the hourly chart, you can see that the price made a higher high compared to the one at $2.4 in a steeper more parabolic manner which could be the development of the 3rd wave of the lower degree count which is why another minor one would be expected. This expected increase would be the ending point of the C wave from the ABC correction to the upside which most likely started developing after the previous descending impulse wave ended on Monday.
Like in the case of Litecoin after the completion of this upward move which is considered to be corrective a move to the downside would be expected as the downtrend continuation should occur. The C wave could bring the price to retest some of the broken horizontal levels for resistance out of which the first in line would be at around $2.67.