EOS has seen a small price decline totalling -1.18% over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $5.05 after EOS sees a small +3.15% price increase over the past 7 trading days.
What’s been going on?
Bitcoin took a little tumble. However, EOS investors are getting excited about the latest EOSFinex announcement.
What is EOSFInex
Top ranking cryptocurrency exchange, BitFinex, has recently announced its plan to release a high-performance decentralised cryptocurrency on top of the EOS blockchain. Bringing the drawing power of such a heavy hitting exchange has got many speculators excited about this announcement. Find out more about EOSFinex in our latest news article.
Where is EOS ranked?
EOS is currently ranked at 5th position in terms of overall market cap across the entire industry. It has a total market cap value of $5.05 after the 15-month-old coin suffers a precipitous 51% price drop over the past 90 trading days. EOS is currently trading at a price that is 76% lower than its all time high price.
Let us continue to analyse price action for EOS over the short term and update our support and resistance areas.
EOS/USD – SHORT TERM – DAILY CHARThttps://www.tradingview.com/x/WCzVIvIh/
A brief catch up
In our last analysis, we had outlined the resistance area at the long term .886 Fibonacci Retracement level priced at $6.07. We had suggested that if price action continues lower we would see support at the $5.34 handle followed by the $4.48 handle.
So what actually happened?
We can see that, after our analysis, price action broke up above our highlighted resistance level at $6.07 but failed to make any further gains and reversed. We can see that the market reversed and found support just above our expected support at the $4.48 handle.
It is also important to highlight that the market has been forming a symmetrical triangle over the past 4 or 5 weeks of trading. We can clearly see the upper boundary and lower boundary forming a symmetrical triangle.
Where are we now?
Price action has recently found support at the lower boundary of the symmetrical triangle that we have highlighted. We can see that the market has struggled to break above the resistance level at the downside 1.414 Fibonacci Extension level priced at $5.34 and is now trading just above the $5.00 level.
Where can we go from here?
If the bulls can regather momentum to push price action further higher, we expect immediate resistance to come in at the $5.34 handle. Further significant resistance located above the $5.34 handle would be expected at the upper boundary of the symmetrical triangle.
If the bulls can go on to push the market above the upper boundary level then further resistance can be expected at the long term .886 Fibonacci Retracement level priced at $6.07 followed by September 2018’s high at $6.82.
What if the bears regain control?
Any downward pressure is expected to be absorbed by the lower boundary of the symmetrical triangle.
However, if the bears do manage to push the market below the lower boundary of the symmetrical triangle then we expect further support below to be located at the psychological round number handle of $4.50. We can see that this area of support is significantly bolstered by a downside 1.272 Fibonacci Extension level priced in the same area. It is also further reinforced as it is the low day closing price for March 2018.
What are the technical indicators reading?
The technical indicators are currently favouring the bears at this moment in time. The RSI continues to trade below the 50 handle indicating that the bears are in control of the momentum within the market. If we are to see further gains within this market we will need to see the RSI break back above the 50 handle.
Let us quickly analyse price action from a shorter time frame to highlight any further potential support and resistance levels.