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


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