The price of Litecoin was on the rise from yesterday and came up by 6% from its low of $124.3 to $131.8 at its highest point today. We have seen a minor pullback to $127.6 and currently it started moving to the upside again.
On the hourly chart, you can see that yesterday’s low was the third lower low from the 29th of Jun. This could have marked the completion of the corrective ABC structure after a five-wave impulse from the 22nd of Jun. If this is true then the price is now set to continue moving to the upside in an impulsive manner.
Another possibility could be that the price made a three-wave increase from the 22nd till the 29th in which case we have seen a corrective ABCDE after, but in both cases, the price would be expected to continue moving higher. Either as the continuation of the corrective WXY of the higher degree in a negative scenario or the 3rd wave from the five-wave impulse in a positive one.
The pullback seen from yesterday is most likely the 2nd sub-wave of starting move to the upside so shortly a breakout would be expected from the descending resistance level and a higher high compared to yesterday’s one. Moving forward we are going to see from the price action which scenario is going to get validated.
From the 9th of July when the price of EOS fell to $3.46 we have seen an impulsive spike of 26% measured to the $4.3 high on the next day. Since then the price made a retracement to $3.59 at its lowest point yesterday, which was still a higher low compared to the one on the 9th. This could have been the starting impulse to the upside similarly like in the case of Litecoin, but could also be the continuation of the corrective move from the 22nd of Jun.
Looking at the hourly chart, you can see that the price would now be expected to move to the upside again at least to the $4.6 as a slightly higher high compared to the one on Monday. On the EOS chart, I’ve labeled a corrective count rather than an impulse in which we could have seen a five-wave impulse from the 22nd till the 5th of July similarly like in the case of Litecoin. This is so to demonstrate the corrective scenario outlook but the expectations are the same.
If however, the price continues moving to the downside further as it is currently in a downward trajectory and gets below the starting point of the 26% increase on the 9th it will invalidate the possibility of the next impulse move to the upside developing.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice. Cryptocurrency CFDs are not available to trade in all jurisdictions.