At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Mar 19 analysis of EOS, we predicted that the price will likely increase, and possibly break from the pattern defined below. However, our prediction was invalidated when the price broke down on Mar 20. Click Here to Read More or keep reading below for our most recent price predictions for EOS!
On Mar 16, 2019, the price of EOS (EOS) reached a high of nearly $4. Gradual losses followed until Mar 20 when a sudden random drop led EOS to lows of under $3.62.
EOS: Trends And Highlights For March 26
- The price of EOS reached a high of $3.90 on Mar 16.
- A gradual downtrend has since ensued.
- The price has been moving inside a symmetrical triangle.
- There is resistance near $3.78 and $3.86.
- There is support near $3.5 and $3.40.
Tracing The SupportThe price of EOS on Binance was analyzed at two-hour intervals from Mar 6 to Mar 26. On March 11, The price reached a low of $3.57. A gradual uptrend followed. Several market cycles were completed with each low being higher than the previous one. Tracing these highs gives us an ascending support line. The support line can act as a floor to price, preventing further downward movement. It theoretically traces the lower limits of the price. It also measures the rate of increase. The price had been increasing at the rate predicted by the line until Mar 15 when price increases accelerated. However, the trend reverted back to the mean on Mar 20. EOS has been increasing at the same rate since. Movements below the line such as the wick lows of $3.54, $3.52 and $3.58 on March 13,14 and 21 can be considered insignificant since they were not supported by continuous losses.
Symmetrical TriangleOn Mar 16, the price made a high of $3.98 and closed at $3.88. Since then, it has been gradually decreasing—creating lower highs in the process. Tracing these highs gives us a descending resistance line: The resistance line can act as a ceiling to price, preventing further upward movement. It theoretically traces the upper limits of the price. The support and resistance lines combine to create a symmetrical triangle. This is a generally neutral trading pattern. Based on this pattern, it is likely that the price keeps moving within the confines of the triangle until a breakout or breakdown occurs. The triangle alone is not sufficient in determining when the move will occur. In order to determine that, a more detailed look into technical indicators is required.
Bullish DivergenceCombining MACD and RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market. The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move. The price made a low of $3.66 on Mar 22. On Mar 25, it proceeded to make another low of $3.60. Similarly, the RSI and the MACD made the first low on Mar 22. However, they have continued to generate higher values since. This is known as bullish divergence and often precedes price increases. Using this indicator and the previous market movements it is likely that EOS may experience price increases in the near future. Rises could be a response to losses experienced since Mar 14. Because the support and resistance appear as if they will converge soon, an increase in price might necessarily cause a breakout. However, the breakout cannot be considered very significant because it will be occurring near the end of the trading pattern. When convergence occurs, a breakout or breakdown would become inevitable anyway.
Future MovementThe price of EOS on Binance was analyzed at two-hour intervals from Mar 3 to Mar 26, in order to better visualize possible reversal areas. Support and resistance areas are created when the price reaches a certain level numerous times. They can act as a floor and ceiling for the price, respectively. There are resistance areas near $3.78 and $3.86. If the price were to break out of the triangle, these two would provide likely reversal areas. Based on our analysis, it is likely that the price moves toward support and possibly reaches it. Price increases do not necessarily mean that either of these support areas will be reached. There are support areas near $3.50 and $3.40. Based on our analysis, it is unlikely that the price will reach these areas in the near future.
Summary of AnalysisBased on our analysis, it is likely that the price of EOS breaks out from the symmetrical triangle shortly before the support and resistance converge. Price increases are expected. They may reach or exceed the support areas defined above If price increases lead to a breakout before convergence, the prediction will be fully validated. If a breakdown leads to continued price increases, the prediction may be invalidated unless a sudden reversal causes prices to move toward the first support. In such a case, this prediction could be considered partially validated. Do you think the price of EOS will break out of the symmetrical triangle? 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.
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.