On June 4, the EOS price reached a high of $6.88. A rapid increase ensued, which was followed by a gradual decrease. The price reached a high of $6.8 on June 7. It has been decreasing since.
EOS seems to have created a support area around $6. Will it break down or is there a reversal in store?
Keep reading below in order to find out:
EOS Price: Trends and Highlights for June 10, 2019
- The EOS price reached a high of $6.88 on June 4.
- It is trading inside a descending triangle.
- The price is trading inside a long-term ascending broadening wedge.
- Moving averages in different time-frames have made bearish crosses.
- There is resistance near $6.75 and support near $5.4.
Tracing the Current Trading Pattern
On June 5, the EOS price reached a low of $6.04. A gradual increase ensued. The price reached a high of $6.8 on June 7.
It has been decreasing since, trading inside the descending triangle outlined below:
At the time of writing, the EOS price was nearing the end of the triangle.
Will it break down?
A look at technical indicators is required in order to find out.
On June 8, the 100-period MA crossed below the 200-period one. This is known as a bearish cross and often indicates that a downtrend has begun. Furthermore, the length of the MAs makes this a long-term bearish cross. The 10- and 20- period short-term MAs followed with a bearish cross several hours later.
A similar movement occurred between the 10- and 20-day moving averages on June 8:
Furthermore, we can see that the EOS price is following an ascending, broadening wedge since Feb 14.
At the time of writing, the price was close to the support line of the wedge.
The analysis of technical indicators supports a breakdown from the triangle and a drop to the support line.
EOS Price: Reversal
In this section, we incorporate resistance areas to predict where the EOS price can initiate a possible reversal.
The closest resistance area is found near $6.75. If the EOS price breaks out from the triangle, it is likely to provide a reversal. According to technical indicators, this is unlikely.
The closest support area is provided by the support line of the long-term ascending wedge. The blue line is the height of the triangle projected downward from the support line. If the EOS price completes a full breakdown, it will reach this area.
Based on an analysis of technical indicators, it is likely that the EOS price will break down from the short-term descending triangle and reach the support line outlined above.
Do you think the price of EOS will break down from the triangle? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
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.