From yesterday’s high at $91.318 the price of Litecoin has decreased by 12% measured to the lowest point the price has been today at $79.87. The price has been in a downtrend from Saturday when it came up to around $98, and then decreased by around 20% and is still moving to the downside.
Looking at the hourly chart, you can see that the price of Litecoin is in a corrective stage after the price increased parabolically last week. As I have counted the sub-waves of the corrective structure we are now seeing its third component developing. The RSI is signaling extremely oversold conditions as it came down below 20% mark.
This third ABC correction would be the third wave of a higher degree corrective count, so after a bit of more downside I would expect to see the start of another move to the upside very soon. If previously we have seen the ending point of the 5th wave of a higher degree the correction seen now could be the start of a higher degree move to the downside, but as it has developed in a three-wave manner it could be a retracement before another upswing if the 5th wave hasn’t ended.
From the momentum behind the expected upward move we are to evaluate the likelihood for the projected scenarios. But for now I would be expecting a corrective upswing in the short-term, potentially reaching a higher high compared to the last week’s one. But if this occurs it would be the last increase before an impulsive move to the downside starts.
From yesterday’s high at around $6 the price of EOS has fallen by 12.6% measured to the current level of $5.3 on which the crypto is being traded. It was not the lowest price has been as it spiked down to $5.1 but the hourly candle closed above as the buyers have stepped in and are currently holding the price.
Looking at the hourly chart, you can see that the price came down to the still unconfirmed support level of the ascending channel. It is validating my assumption that the previous increase was corrective in nature and not a continuation of the upward momentum we have seen ended last Wednesday when the price of EOS increased by 61.83% reaching $5.847 at its weekly high.
As the price encountered the most significant resistance point to the upside a correction started developing with the price at first falling down by 16.25% after which an increase of 22.43% occurred and now another downfall. This movement that we have seen from last Wednesday is most likely to end as a higher degree of three-wave correction.
As the RSI is signaling oversold and the price reached minor ascending support level an upward movement is now expected which could be a continuation of the bullish momentum that we have seen from last week and would be the 5th wave of Minor count impulse wave.
If the 5th wave ended however the recently seen sideways movement could be the part of a higher degree correction that is set to serves as a consolidation point between the buyers and the sellers before the sellers take control again.