EOS Unable to Break Consolidation Despite Overall Bullish Sentiment

Vasu Singhal
Vasu Singhal is a management student and a stock market trader. He believes that investment avenues and opportunities are very diversified. Therefore, he has an interest in blockchain technology too. He likes to evaluate best investments available in the financial market with showcasing the required skills.
  • EOS has been one of the most surprising performers from the past week which has failed to reach any new levels in the market. 
  • It is also suspected to in a strong consolidation phase despite strong fundamentals
  • One of the prime reasons for the consolidation can be the declining rate of the EOS/ETH pair. 

EOS has failed to show any significant price recovery action in the market as the other major altcoins are gaining new levels. The CMP is placed at $2.65 with a marginal trading loss of -0.78%. The market capitalization is at $2,480,959,040 with the 24-hour volume traded of $2,001,816,464. 

eos
Source: Coinmarketcap

As the weekly chart reflects, EOS price levels are struggling within the consolidation range from the past week. It was expected that with the overall bullish sentiment in the market, it would be reclaiming the bullish level of $3.00, however, it failed miserably in doing so despite being backed by recent fundamentals in the market. One of the primary reasons for the downfall can be the declining rate of the EOS/ETH pair which is currently at 0.007124 ETH which was at the level of 0.00800 ETH at the starting of the month. 

Technical Levels Favors Consolidation 

EOS TECH
Source: Tradingview

The technical chart reflects on the downtrend faced by EOS in the previous month. There has been no major price recovery action since then. We have a sudden positive bump candle on the chart which was the result of fundamental kicking in the market. However, the cryptoasset was unable to capitalize on the positive move and made it more like a flat bottom pattern indicating  a pump and dump scenario. 

RSI levels are showing consolidated nature after breaking below from the overbought region. The current level stands at 48.93. 

CCI levels are also moving in between the normal territory and avoiding any sort of volatility indicating the strong magnitude of the consolidation. The current level stands at -68.33.

Where EOS Can Be Headed? 

The ongoing strong consolidation hasn’t let the levels to take any recovery action in the market. Also, the resistance placed at $2.80 might give strong negative reversals to the cryptoasset further ahead in the market. A possible downtrend can be building up. 

RESISTANCE LEVEL: $3.00 & $2.80 

SUPPORT LEVEL: $2.50 

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