EOS Price Analysis: EOS/BTC Has Reached a Significant Support Area

Another upward move was initiated after the price reached similar lows in December 2018. At the time of writing, the EOS price had again dropped near the 5000 satoshi range. Will an upward move follow? Below, we will take a look at the price of EOS in different time-frames alongside technical indicators in order to answer this question. If you are interested in trading other digital assets like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and XRP on our partner exchange, follow this link to get all set up on XCOEX. For a video analysis, please click below:

EOS Price: Trends and Highlights for July 3

• EOS/BTC is trading inside a significant support area.
• The weekly moving averages (MA) have made a bearish cross.
• The daily MAs have acted in a similar manner.
• The price is following a descending support line.
• There is a very small bullish divergence developing in the RSI.

Long-Term EOS Price Outlook

During the week of June 10 – 17, the 10-week MA crossed below the 20-week one. This is known as a bearish cross and often indicates that a downtrend has begun. In the case of EOS, it preceded the most recent decrease. Since then, the EOS price has been trading below both MAs, facing close resistance from the 10-day one. If the price breaks down from the support area, the next one can be found near 2000 satoshis.

Descending Support

A look at the daily chart shows that the EOS price has been following a steep decreasing support line. At the time of writing, the price had touched the support line for the third time. After the two previous times this transpired, an upward move followed. Furthermore, we can see that the EOS price has not yet begun to retrace in response to the decreases in June. It is customary to have a retracement to the 0.382 or 0.5 fib level of the entire downward move. In this case, this would mean a move towards 7000 satoshis.

Technical Indicators

A look at the daily MAs gives a similar outlook to the weekly ones. A bearish cross between the 10- and 20-period MAs occurred on June 10. Since then, the EOS price has been trading below both MAs, facing very close resistance from the 10-day one. The RSI gives us our first positive signs. It has been generating bullish divergence since reaching a low on May 13. This divergence, however, is quite small and is not occurring in both indicators. Furthermore, it is occurring in a neutral trading pattern. The use of technical indicators does not suggest that the EOS price will begin to increase. However, the very significant support area might not break this easily. Rather, it is likely that the price will continue to trade near the support line before it decides the direction of its next upward move.

Summary

The price of EOS is trading inside a very significant support area. Furthermore, it recently touched the descending support line it has been following. While technical indicators do not yet suggest that the price will begin an upward move, its position and prior movement do. Do you think the EOS price will break down below the support area? Let us know in the comments below.

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.  Images are courtesy of Shutterstock, TradingView.