LTC and EOS – Massive Spike Seen But Could Still Be Corrective

LTC/USD

Today the price of Litecoin was $38.31 at it’s lowest point but as it made a quick dip to the downside we have seen buying being activated in a strong momentum. The price reached $44.2 at it’s highest point which was an increase of 15.4% but is now starting to decline and is currently sitting just below $43.4.

On the hourly chart, you can see that the price previously retested the 0.382 Fibonacci level but left a large wick on the hourly candle as it immediately started increasing from there. A breakout from the descending channels with a higher high being made to the vicinity of the once before it. As we have seen a corrective structure in a descending channel the breakout made could be the uptrend continuation of the five-wave increase of a higher degree.

Looking at the wave structure inside the descending channel it could have been a complex correction sub divided intro three consecutive ABC corrections. If that is the case then it ended on the interaction with the 0.382 Fib level, but it doesn’t seem like this should be counted in the outlined manner. More likely we have seen a five-wave impulse ending on the 0.236 Fib level in which case the upward move to the $41.7 horizontal resistance followed by the retest of the 0.382 Fib level and now the move to the upside would be an upward ABC correction. This is especially considering the amount of increase that we have seen which isn’t typical for the 1st wave of the starting impulse.

If the second is true then this was the completion of the 2nd wave from the higher degree out of either three-wave correction or an impulse wave altogether which will be illustrated on the EOS chart.

EOS/USD

From today’s low at $2.35 the price of EOS has increased by 16.25% coming to $2.732 at it’s highest point. Currently, it is being traded slightly lower at $2.6835 but is still above it’s second prior high unlike in the case of Litecoin.

On the hourly chart of EOS I have outlined the different possibility and in my mind a more likely one, namely that today’s increase is the C wave rather the first wave from the next starting impulse. As you can see these labels are implying that from the $2.83 high we have seen a five-wave move that formed a descending channel, followed by an ABC correction to the upside. If this is the case then from here we are to see at least another five-wave move in which case this would end as an ABC of a higher degree. But at most, we could see a five-wave impulse out of which today’s increase would have been the ending point of its 2nd wave.

If the prices continue moving past April’s high this possibility would be invalidated as the 2nd wave cannot go beyond the starting point of the 1st one. But if the price immediately starts decreasing from here and goes below today’s lowest then this possibility would be confirmed.