EOS/USD Price analysis – Breakout on the horizon?

EOS looks primed to finally breakout from its monthly lows and recent bearish trend. Does it have enough momentum to break through the $4 resistance?

TL:DR

  • EOS continues making higher highs and higher lows
  • EOS is approaching crucial resistance at $4
  • If $4 breaks, there’s little stopping it from reaching next key resistance at $4.65

Cryptocurrency heatmap by Coin360

The majority of crypto currencies have enjoyed yet another day of gains in the market with key coins such as Bitcoin (BTC) and Ethereum (ETH) breaking crucial levels of $35,000 and $2000 respectively. An odd case to see, is Dogecoin (DOGE) for once falling behind the rest of the market. What will be interesting to note is whether or not this rapid increase in price and momentum can be sustained for the week to come. EOS is currently sitting at rank 27 on CoinMarketCap with a circulating market cap of $3.807 billion. Shockingly, its 24 hour trading volume has surged by 47% to reach $1.017 billion which signifies that interest in the coin has significantly increased.

EOS price over the last 48 hours – Making bullish flag patterns

Over the last 48 hours EOS has been continuing to climb making higher highs and higher lows. After breaking through resistance at $3.70, it successfully retested it as support – last kiss trade. This is where the price of an asset breaks through either a support or resistance, before coming back to retest that zone (ie kissing it) before bouncing back off. It is also important to note that price is finally back above its 50 period Moving Average (MA) which signifies bullish momentum. Price is now approaching a crucial resistance area at $4.00 which has historically been crucial in providing both support and resistance. Its previous attempt to break $4.00 resulted in a sharp rejection with price retracing back down to $3.00.

EOS/USDT price chart by TradingView

EOS/USDT 4-Hour chart: Is momentum enough to break the downtrend?

Whilst EOS has seen a rapid increase in price over the last few days, it should not be forgotten that its long term trend is still bearish. All previous attempts to break this trend have failed dramatically with prices continuing to create lower lows. Could this time be any different? It is impossible to know for sure, but a key indication would be by paying attention to its trading volume. Over the last 24 hours, volume has increased by 47% which signifies a massive uptick in interest in the coin. If the $4.00 mark does not hold, price can be expected to retract back down to at least the $3.70 support. However, if the $4.00 resistance breaks, there are very little supply zones above it which means it could violently shoot up to its next crucial area of $4.65. This would be a critical zone for EOS where the longer period MA coincides with the horizontal resistance. 

EOS/USDT price chart by TradingView

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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