- EOS remains trapped within a symmetrical triangle.
- Support moving forward; $518, $5.00, $4.73, $4.47, $4.16.
- Resistance moving forward; $5.49, $5.81, $6.07, $6.20, $6.83, $7.00, $7.53.
EOS has seen a small price increase totaling 1.76% over the past 24 hours of trading. The cryptocurrency is now trading at a price around $5.21 after seeing a 7-day price decline totaling -3.26%.
EOS is currently ranked in 5h position in terms of overall market cap across the entire industry. It currently holds a total market cap value of $4.72 billion after seeing a 30-day price decline of -8%. The 16-month-old coin is now trading at a price that is -75% lower than its all-time high price.
Let us continue to analyze price action for EOS over the short term and highlight any potential areas of support and resistance.
EOS Price Analysis
Analyzing the market from the short term perspective above, we can see that EOS has remained trapped within the confines of our previously highlighted symmetrical triangle pattern. We can see that EOS had recently tested the lower boundary of the triangle but the bulls stepped in to make sure price action did now break below.
Price action is still trapped within the range of the previous swing leg higher when the market started at a low of $4.17 on the 14th of August 2018 and extended to a high of $6.82 on the 1st of September 2018. This was a price increase totaling 63% from low to high.
The market is now trading above support at teh .618 Fibonacci Retracement level priced at $5.18. If the bulls continue to press price action higher they will meet immediate resistance above at the .5 Fibonacci Retracement level priced at $5.49. This area of resistance is significant due to the upper boundary of the triangle also being located within the same price level further adding to the strength of the resistance in the area. Price action has not managed to penetrate and close above the upper boundary of the triangle since August 2018 so significant momentum will be needed to overcome this level.
If the buyers do pressure the market above the upper boundary of the triangle further resistance above can be located at the .382 and .236 Fibonacci Retracement levels (drawn in green) priced at $5.81 and $6.20 respectively. If the bullish momentum can continue even further higher to break above $6.83 then further higher resistance can be located at the 1.272 Fibonacci Extension level priced at $7.53.
Alternatively, on the bearish side, if price action breaks below the lower boundary of the triangle the bulls can look for further support below at the .786 and .886 Fibonacci Retracement levels priced at $4.73 and $4.47 respectively. Further support below this level can be expected at the August 2018 low priced at $4.17.
The RSI is producing a reading that favors the bears at this moment in time as it trades below the 50 handles. The recent rise toward the 50 handles could indicate that the previous bearish momentum is now showing signs of failure.
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Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Reach out to him at [email protected]