Will a Reversal Push EOS Past Resistance? (EOS/USD and EOS/EUR Price Analysis for 04/26/19)

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At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our Apr 24 analysis of EOS (EOS), we predicted a price decrease. Our prediction was validated on Apr 26 when the price reached the support area we defined.  To learn more, read our EOS/USD($) and EOS/EUR(€) analysis below:

On Apr 10, 2019, the price of EOS reached a high of  $6.07 and €5.38. A sharp decrease ensued, and the price reached a low of $5.07 and €4.53 on Apr 12. It reached the same levels on Apr 24.

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EOS/USD & EOS/EUR Prices: Feb 11 – Apr 26

A sharp decrease began  At the time of writing, the price of EOS has made lows close to $4.4 and €4.0

Where will the price go next? Let’s find out.

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EOS: Trends And Highlights For April 26, 2019

  • The price reached a high of $6.07 and €5.38 on Apr 10.
  • It is trading inside a symmetrical triangle.
  • Bullish divergence is developing in the RSI.
  • There is support near $4.0 and €3.4.

Tracing the Current Trading Pattern

The price of EOS/USD on Binance was analyzed at six-hour intervals from Feb 11 to Apr 26 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 Apr 10, the price made a high of $6.27. Several market cycles have been completed and the price has made several lower highs.

Tracing these highs gives us a descending resistance line:

On Feb 6, the price made a low of $2.32. A gradual increase was followed by a decrease. The price has made several higher lows.

Tracing these lows gives us an ascending support line. The support and resistance 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 some technical indicators.

Technical Indicators

In this section, we incorporate the relative strength index into our analysis.

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.
RSI is traced in the graph below:

On Apr 24, the price made a low of $4.14. It made a lower low of $4.11 on Apr 25.

Similarly, the RSI reached a low on Apr 24. However, it has proceeded to generate higher values.

This is known as bullish divergence and often precedes price increases.

The use of this indicator makes it likely that the price will increase towards the resistance line of the triangle.

Future Movement

In this section, we incorporate support areas into the analysis to determine possible future price levels beyond the support line alone.

Support areas are created when the price reaches a certain level numerous times. They can act as a reversal area in case a breakdown or breakout occurs.
One support area is shown for EOS/EUR (first graph) and EOS/USD (second graph) below:
EOS/EUR
EOS/USD

The closest support area is found near $4 and €3.4. If the price breaks down from the triangle, it is likely to reach this area.

We do not believe this to be likely. On the contrary, EOS appears more likely to rise toward the resistance area. A breakout is possible but not expected.

Summary of Analysis

Based on our analysis, it is likely that the price will begin to increase towards the resistance line of the triangle. While prices may near $5, it may still be sometime before EOS breaks this threshold. However, levels over $4.80 and €4.3 may be reached.

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

For 2019 and 2020 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.

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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