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- EOS price-level rejected 50-day ema, but confirmation awaited for short term bearish trend reversal.
- EOS unable to sustain previous week closing and and slips below $1,meanwhile volume profile indicates mild bullishness
- Super trend generated fresh sell signal and RSI reversed from overbought levels
EOS prices had been in a positive momentum from the past few weeks but recently prices lacked momentum on higher levels which is treated as either a retracement or a short term trend reversal. Currently, EOS down by 3.19% on a intraday basis and 24H volume to market cap ratio stood at 0.1377
Higher time frame narrative
On a larger time frame ,EOS prices had been quite volatile and disappointed investors in terms of returns. In the beginning of July month EOS picked up upside momentum and prices shot up almost 90% in a short span of time, later it faced resistance at $1.815 forming a double top pattern and lost all the previous gains in the past 2 months. The 200 ema (green) at $1.325 sloping sideways indicates prices may witness some sideways movements on a positional basis. The 50 day ema (pink) at $0.997 will be act as immediate resistance for bulls in coming days followed by next hurdle will be $1.211
The volume profile indicates prices may take support in the range between point of control (POC) $0.962 and value area low(VAL) $0.866 Currently, prices are approaching the demand zone, So we may see some upside momentum in coming weeks.
Smaller time frame narrative
In a smaller time frame, EOS’s price level took support near $0.800 and had been rising slowly and steadily but recently it faced rejection from $1.056 which will now act as an immediate hurdle for short term traders. The Super trend generated fresh sell signal which indicates short term trend reversal and price may go further down towards $0.900
Relative strength Index
In November RSI tested the overbought zone at 30 and immediately bounced back reclaiming neutral level 50, but recently RSI reversed from 60 pointing downwards indicating prices lack the upside momentum and we may see some cool off from higher levels.
Summary
EOS had been in the spotlight due to Tether’s integration with Binance, but despite the positive news, bulls are struggling to sustain above $1. As of now, aggressive traders should look for a buying opportunity on lower levels around the target of $1.211 and above by keeping $0.900 as SL and conservative investors must avoid buying this script till it’s trading below $1.056.
Technical levels
Resistance levels : $1.056 and $1.211
Support levels : $0.800 – $0.500
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
