EOS Remains above Key Support despite Drop

The rate of the EOS altcoin (EOS) is located near the key long-term support, the loss of which can provoke a sharp drop in quotations. However, recently, the price has started to give short-term bullish signals, which will be confirmed on a break above $2.60.

Long-term levels

The weekly chart shows that EOS has been falling in price since May 2019. When the maximum of $8.65 was reached. During the fall, the price follows the downward resistance line.

Altcoin tested this line in August of this year, but soon pulled back, resulting in a bearish signal in the form of a false upward breakout on the charts.

Since then, EOS has dropped to the long-term support of $2.30.

In the case of a bullish breakout, the nearest resistance is expected at $3.90, where the 0.618% Fibonacci retracement level is located relative to the previous decline and the aforementioned August high.

TradingView’s EOS Chart

Key information support

On the daily chart, the focus is on the $2.30 support. Cryptocurrency trader @algohammie emphasizes that EOS is trading in the area of important support, the loss of which is likely to lead to aggressive sales.

The $2.30 level has been acting as a support since the beginning of April, and as long as the price is above this mark, bearish risks are limited.

However, technical indicators do not signal a reversal yet. The MACD has started to rise, while the RSI and stochastic oscillator are declining and do not signal either a bullish divergence or a bullish intersection.

TradingView’s EOS Chart

The 6-hour chart shows the first signs of a reversal. The RSI and the MACD signal a bullish divergence, with the latter entering positive territory.

A break in the resistance of$2.60 may trigger a move towards the $2.93 level.

TradingView’s EOS Chart

Wave Mode analysis

Since March 13, the altcoin has formed A-B-C pattern, ending with its high on August 17 (orange on the chart). The relevance of this wave structure is supported by the 1:1 ratio of A:C waves.

Now the quotes are most likely in the process of forming wave X, which will be followed by another figure A-B-C.

TradingView’s EOS Chart

EOS/BTC

The chart of the EOS/BTC pair looks much more pessimistic. The price lost the support of 3250 satoshi, which turned into resistance. This zone has been acting as a support since last September.

The only bullish signal at the moment is a bullish divergence on the weekly RSI, which indicates the possible implementation of a rebound.

But as long as the pair does not rise above the level of 3250 satoshi, the trend will be considered bearish.

TradingView’s EOS Chart

Disclaimer


All information contained on our website is published in good faith and objectively, and for informational purposes only. The reader is solely responsible for any actions taken on the basis of the information received on our website.

Red Light Finance : The Future of Crypto through Innovation

Redlight Finance, a technology company that provides a complete cryptocurrency technology platform, is launching...

Voltichange Ready to Enhance the Volt Inu Universe

Volt Inu's team recently announced that it is about to release its anticipated decentralized...

SolidProof to Offer Discounted Prices on Their Smart Contract Audit, KYC, and Marketing Services

SolidProof has just announced that it is offering discounted prices on its smart contract...