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EOS (EOS) Drops to Range Low After Sharp Rejection, Future Looks Uncertain

2 mins
Updated by Geraint Price
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In Brief

  • EOS has broken out from a long-term descending resistance line.
  • It is trading in a range between $1.40 and $1.95.
  • EOS/BTC is facing resistance at 900 satoshis.
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EOS (EOS) has returned to the support area of a horizontal range. There are no definite bullish reversal signs in place.

EOS has been moving upwards since June 18. After initially being rejected by a descending resistance line and the $1.40 horizontal resistance area, the price managed to break out on Aug 11. It proceeded to reach a high of $1.95 on Aug 22. 

However, the price was rejected afterward, validating the $1.95 horizontal area as resistance. The price then decreased to the $1.40 horizontal support area. So, EOS is currently trading in a horizontal range between $1.40 and $1.95, respectively. 

The daily RSI is neutral, since it is trading right at the 50 line. This is in alignment with the fact that the price is trading inside a horizontal range. 

So, the daily time frame provides a fairly neutral outlook.

EOS Resistance line
EOS/USDT Chart By TradingView

Current movement

The six-hour chart does not provide a clear indication of where the price is going. On the bearish side, EOS has been following a shorter-term descending resistance line (dashed) since Aug 22.

The line most recently caused a rejection on Sept 3. Additionally, the RSI seems to have decreased below 50. So, the trend cannot be considered bullish until the price breaks out from the line and the RSI moves above 50. 

On the bullish side, there is ample support at $1.30, created by the previous resistance line of an ascending parallel channel. This also coincides with the previously outlined horizontal support area. 

So, it is possible that the price will bounce at this level and then break out. Failure to do so would confirm that the trend is bearish.

EOS decrease
EOS/USDT Chart By TradingView

EOS/BTC

Cryptocurrency trader @MesaWine1 tweeted a chart of EOS/BTC, stating that the price has completed a five-wave downward movement. If so, a new bullish trend has likely begun.

EOS Movement
Source: Twitter/TradingView

The EOS/BTC chart is more bullish than its USD counterpart. The main reason for this is the bullish divergence in the weekly RSI (green line) and the breakout from a long-term descending resistance line (dashed). 

However, the price is still facing strong resistance from the previous all-time low level at 900 satoshis. If it manages to reclaim the 900 satoshi resistance area, it would confirm that a bullish reversal has begun and greatly accelerate the rate of increase.

Long-term
EOS/BTC Chart By TradingView

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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