EOS Makes Massive Gains. Has A Top Finally Been Reached? (EOS/USD, EOS/EUR Price Analysis for 05/22/19)

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At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. Below we are going to do an analysis on EOS (EOS). To learn more, read our EOS/USD($) and EOS/EUR(€) analysis below:

On Feb 17, 2019, the price of EOS reached a low of $2.82 and €2.50. A gradual increase ensued, and the price reached a high of $6.88 and €6.13 on May 16.

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The price has been slowly decreasing since. At the time of writing, it was trading close to $6.2 and €5.6.

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Where will the price go next?

Let’s find out.

EOS: Trends And Highlights For May 22, 2019

  • The price reached a high of $6.88 and €6.13 on May 16.
  • It is trading inside an ascending channel
  • Bearish divergence is developing in the RSI and the MACD.
  • There is resistance near $6.6 and €5.8.
  • There is support near $5.8 and €5.1.

Tracing the Current Trading Pattern

The price of EOS/USD on Binance was analyzed at one-day intervals from Feb 1 to May 22 to trace the current trading pattern. We do not include euros in this section because only one trading pair is needed to accomplish this. Both EOS/USD and EOS/EUR are discussed in the final section.

On Feb 17, the price made a low of $2.82. A gradual increase took it to a high of $4.53 on Feb 24. Since then, the price has been trading inside the ascending channel outlined below:

Both the resistance and support lines have been touched four times. At the time of writing, the price was trading close to the resistance line of the channel.

In order to predict whether a breakout will occur, a look at technical indicators is required.

Possible Top?

The price of EOS is analyzed alongside the RSI and the MACD below:

On Apr 10, the price made a high of $6.07. Likewise, the RSI and the MACD also made highs on the same date. However, while the price has continued to increase, the RSI and MACD have generated lower values.

This is known as bearish divergence and often precedes price decreases.

Furthermore, the price seems to have made a double top pattern on May 14-18. This is a bearish reversal pattern.

The use of these indicators suggests that a breakout is unlikely. Price increases inside the confines of the channel are possible, but we believe a drop towards the support line is forthcoming.

Future Movement

In this section, we incorporate support and resistance areas inside the channel to predict possible short-term reversal areas.

One support and resistance areas are shown for EOS/EUR (first graph) and EOS/USD (second graph) below:

The closest support area is found near $5.8 and €5.1 while the closest resistance area is found near $6.6 and €5.8.

We believe that short-term movement inside these two areas is likely.

Summary of Analysis

Based on our analysis, it is likely that the price will begin to decrease towards the support line of the channel. Price increases within the confines of the channel are possible, while a breakout is unlikely.

Do you think the price of EOS will begin a reversal? Let us know your thoughts in the comments below!

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.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

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