Amid Market Correction EOS Price Rising At Full Throttle; Is $2 next Target?

In the big picture, the EOS/USDT pair chart shows an evident rounding bottom recovery in the daily time frame. This pattern usually appears at the market bottom to indicate a new uptrend. Thus, under the influence of this pattern, the altcoin should steadily rise, breaking through the in-between resistance. So far, the coin price has reached the $1.7 mark, registering a 95% growth from the bottom support of $0.89.

Key points from EOS analysis: 

• The EOS price accelerated 35% in the last four days
• The 20-and-50-day EMA offers dynamics support to EOS price
• The intraday trading volume in the EOS is $1.56 Billion, indicating a 127% gain

Source- Tradingview

Besides the rounding bottom pattern, the ongoing recovery phase in EOS price responded to the rising wedge pattern. In theory, this pattern encourages the continuation of the prevailing downtrend once the price plunges below its support trendline.

However, in rare cases, the price may breach the overhead trendline, indicating high bullish momentum in the market. Thus, On august 22nd, the EOS traders witnessed this unusual scenario as the price gave a massive breakout from the resistance trendline.

The breakout candle tagged the $1.9 resistance and reverted back to test their new support. The EOS price is down 5.4% today and retests the branched resistance as suitable footing to bolster further rally.

If the buyers sustain above the trendline, the accelerated bullish momentum should push the market value 23% higher to hit a near target of $2.1.

On a contrary note, if the selling pressure in the market continues, the EOS price may plummet below the trendline. Furthermore, the fake-out breakout action may punish aggressive buyers, as their forced liquidation will bring more selling orders.

However, until the lower trendline is intact, the overall sentiment will remain bullish.

Technical indicator

EMAs: the rising 20-and-50-day EMA accentuates an early sign of trend reversal. Moreover, the bullish crossover of 20-and-100-day EMA encourages the breakout theory.

RSI– the RSI slope moving sideways despite the rising price action indicates a slight weakness in bullish momentum. Moreover, the recent breakout candle pushed indicators to the overbought region suggesting the trader has overextended the bullish activity.

• Resistance levels- $1.9, and $.21
• Support levels- $1.71 and $1.42