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.
The price has been slowly decreasing since. At the time of writing, it was trading close to $6.2 and €5.6.
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
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.
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.
In this section, we incorporate support and resistance areas inside the channel to predict possible short-term reversal areas.
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.