EOS Finds Support at the Breakout Level

EOS (EOS) Highlights

• The previous breakout level is found at 40,000 satoshis.
• A golden cross has transpired.
• EOS is trading inside a short-term range of 41,000-46,000 satoshis.
• The price is trading inside a short-term ascending channel.

Full-time trader @Livercoin outlined an EOS chart showing the price has validated the previous breakout level as support and suggesting the price will move upwards. He has outlined the main resistance area at 70,000 satoshis.

$EOS / $BTC TA

– Bought some…#Crypto pic.twitter.com/YRVzXxHTfR

— Livercoin (@livercoin) February 22, 2020

Will EOS be successful in getting there, or will it decrease below this support area instead? Continue reading below if you are interested in finding out. Note: This is a short-term analysis. For the long-term one, please click here.

Retest of Breakout Level

On Jan. 14, the EOS price broke out above the 40,000 satoshi resistance area. It continued to increase for exactly a month until it reached a high of 53,210 satoshis on Feb. 14. The recent decrease only served to validate the area as support, and even though the price decreased well below this level, it created a long lower wick and proceeded to reach a daily close above. In addition, a bullish cross between the 50- and 200-day moving averages (MA) previously transpired. The decrease also served to validate the 200-day MA as support, while the price is currently attempting to flip the 50-day MA. On a more bearish note, the daily RSI has fallen below 50, suggesting that EOS is in a bearish trend. It had not done so since prior to the breakout on Jan. 10.

Trading Range

In the short-term, we can define a trading range with lower and upper limits at 41,000 and 46,000 satoshis, respectively. In addition, EOS is following a descending resistance line, currently hovering right at it. Unless the price breaks out, it is expected to test the 4,100 satoshi area once more. The six-hour RSI supports this possibility, since it was rejected by the 50-line. It crosses below 50 on Feb. 15, after being above this line for 36 days.

Ascending Channel

In the short-term, the price is trading inside an ascending channel. As long as it is doing so, it is expected to increase at its rate. A breakdown would cause a re-test of the bottom of the range at 41,000 satoshis. Due to longer-term indicators, this seems the most likely possibility. To conclude, the EOS price is trading in a range between 41,000-46,000 satoshis. We believe it will test the lower limit once more before potentially moving upwards towards resistance.