EOS Price Analysis: Sideways Channel And Breakdown

  • EOS is moving in a sideways channel of $2.45-$3.6 
  • EOS recently got rejected from $3.6 levels and sank 32%-33% to test $2.45
  • EOS is on its support again and may remain at the same levels for some time

EOS recently gave a triangle breakdown which resulted in a 40% upside. However the coin got rejected from the neckline of a head and shoulder pattern made in the month of March 2020. The neckline is somewhere around $3.8-3.9 levels, which pushed the coin back at the support $2.5 levels diminishing majority of the gains. The 24 hour volume and market cap are $1,203,845,901 and $2,481,484,972 respectively. 

Decoded: The Breakdown Of EOS, A Neckline Of A Year Old Head And Shoulder Pattern 

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EOS made a head and shoulder pattern in the month of March 2020, which had a neckline around $3.5-$3.6. The neckline to the date acts as a strong resistance for the coin and failed three possible breakouts of the coin since March 2020. The recent failed breakout made the coin sink by 33%-34% and test supports of $2.5 levels again. 

The coin has reduced volatility as shown by contracting Bollinger Bands. The median is an immediate resistance for the coin(at $3.01 levels)

The VWAP is calculated at $$2.64 which will be another resistance for the coin. 

The RSI is in neutral territory(45 levels) but has made a curve in today’s session, showing a return of bullish momentum in the coin.

The MACD(8,21,5) has given a bullish crossover however the coin is resting at support, as a result it is advisable to not to short the coin unless it breaks this strong support of $2.5.

The ADX signal lines are at 2.4 signalling a neutral/weak trend. These are levels from where new trends are often commenced. Any fresh buying or selling will push ADX+ or ADX- upwards to verify the onset of bull or bear really. 

Conclusion –

FOr now, EOS/USD is dormant. It made a doji candle and hasn’t given any signs of direction so far. However, considering past trends, EOS/USD is likely to respect the support and continue making more attempts to break the resistance of $3.5-$3.6. 

Resistance: $2.89, $3.4, $3.5 and $3.6

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Kartik Dhankanihttp://thecoinrepublic.com
Kartik Dhankani is a BAF Student based out of India and a stock market trader and Financial Analyst. He seeks to diversify his reach to different investment alternatives and analyse them using his knowledge for fundamental and technical analysis

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