Will This Bullish Pattern Propel The EOS Price To $2.80?

The EOS/USDT pair failed to give a bullish breakout of a rounding bottom pattern due to the increased selling pressure at the $1.89 supply zone. However, the price action displays the underlying bullish sentiment is preparing a trend reversal with a cup and handle pattern. So, should you consider buying for the long-term or wait for the current correction phase to cool off?

Key points: from EOS analysis:

• The EOS price action shows the formation of the cup and handle pattern
• The 50-and-100-day EMA nearing a bullish crossover encourages growth in underlying bullish momentum
• The intraday trading volume in the EOS is $1.5 Billion, indicating a 48% gain

Source- Tradingview

The bullish reversal pattern discussed in our previous article failed to break the resistance neckline at the $1.9 mark. Currently, the bearish turnaround from the overhead resistance accounts for a price drop of 13% in the last four days. 

The correction phase approaches the $1.58 support level after breaking below the 200 days EMA. However, the prices sustain above the 100-day EMA, which increases the possibility of a bullish crossover with the 50-day EMA. 

Coming back to the price action, the possibility of a cup and handle pattern arises in the daily chart after the prices are reversed from the $1.89 supply zone. However, the bullish reversal to complete the price pattern may drop below the $1.5 mark before taking a bullish reversal from the $1.41 support level. 

Hence an opportunity to short-sell at the current market price arises for the sideline traders. 

In the long term, If the EOS prices manage to exceed the supply zone at $1.89 to give the cup and handle pattern breakout, a prolonged uptrend to the $2.80 mark is possible. 

Technical indicator

DMI indicator: the DI lines project a bullish trend in the US prices despite the recent downfall. Meanwhile, the ADX line maintains a positive trend reflecting an increasing trend momentum. 

RSI– despite the suddenly increased volatility in market price, The RSI slope maintains a diagonal uptrend in the nearly overbought zone. 

• Resistance levels- $1.56, and $1.73
• Support levels- $1.41 and $1.26