On Apr 10, 2019, the price of EOS reached a high of $6.07 and €5.38. A sharp increase ensued, and the price reached a low of $5.07 and €4.53 on Apr 12.
It has been on an uptrend since:
Will the price rise back up to $6/€5.3 or fall back down to $5/€4.4?
Let’s find out:
EOS: Trends And Highlights For April 19, 2019
- EOS reached a high of $6.07 and €5.38 on Apr 10.
- It appears to be trading inside a symmetrical triangle.
- Long-term bearish divergence is developing in the RSI.
- There is support near $4.9 and €4.35.
Tracing the Current Trading Pattern
On Apr 11, the price made a low of $5.11. Since then, it has been increasing, creating several higher lows.
Tracing these lows gives us an ascending support line:
On Apr 11, the price reached an hourly high of $5.67. Several market cycles have been completed and the price has made several lower highs.
Tracing these highs gives us a descending resistance line.
The resistance and support lines combine to create a symmetrical triangle:
It is likely that the price will keep trading inside the confines of this triangle until a decisive move occurs.
In order to figure out the direction of the move, we need to look at a longer time-frame and incorporate technical indicators.
On Feb 24, the price reached a high of $4.58. It continued to increase and on Apr 10 it reached a high of $6.06.
Similarly, the RSI made the first high on Feb 24. However, it has continued to generate lower or identical values.
This is known as bearish divergence and often precedes price decreases. The divergence is very significant in value. Furthermore, it is occurring close to a major resistance area near $6.
The use of this indicator makes it unlikely that the price will have enough strength to move above the resistance area at $6. Price losses and a breakdown seem more likely.
In this section, we incorporate support areas into the analysis to determine possible future price levels.
The closest support area is found near $4.9 and €4.35. If the price breaks down from the symmetrical triangle, it is likely that it will reach this area.
Summary of Analysis
Based on our analysis, it is likely that the price of EOS will keep trading inside the confines of the triangle until a breakdown occurs.
Do you think the price of EOS will break down from the triangle? Let us know your thoughts in the comments below!
For 2019 and 2020 EOS price predictions, click on the green button 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.