EOS Price Analysis: EOS/USD Has Found Support Above $6

Where will the price go to next? Keep reading below in order to find out.

EOS Price: Trends And Highlights For June 26

• EOS/USD is trading inside an ascending, broadening wedge.
• The moving averages have made several bullish crosses.
• It is trading inside a short-term ascending channel.
• It has not yet broken out above the 0.618 fib level of the prior downward move.

EOS Price in an Ascending Wedge

The EOS price made lows of $2.76 on Feb 14. It has been increasing since, trading inside the broadening ascending wedge outlined below.

Short-Term EOS Price

Since reaching highs of $7.64 on June 23, the EOS price has been decreasing, trading inside the descending channel outlined below:

The channel is part of a longer term ascending channel — which began when lows slightly below $6 were reached on June 7. At the time of writing, the EOS price was trading very close to the support line of the channel. However, we cannot yet say with certainty that the channel is the beginning of an upward move. Rather, it is possible that it is a retracement in response to the rapid decrease from $8.5 to $6. As is visible above, the EOS price has struggled to break out above the 0.618 fib level of the downward move — which is found at $7.5. A breakout above this level would likely cause a breakout from the channel and cause the price to reach highs near $8.5 again. Conversely, if the price breaks down from the channel, it is likely to again reach the support area at $6. The 200-hour moving average has been a good indication of whether the price is in an uptrend or a downtrend. It has acted as resistance/support several times. As long as the price stays above the MA, the potential upside is higher. If, however, it moves below it, and the MA acts as resistance, it is likely to break down towards $6. Currently, the former seems more likely.

Summary

The price of EOS has been trading inside a long-term ascending, broadening wedge and a short-term ascending channel. We cannot say for certain whether the movement in this channel is the beginning of an upward move or a response to prior decreases. A breakout above $7.5 would be a strong indication of the former, while a breakdown from the channel would support the latter. Where do you think the price of EOS will begin an upward move? Let us know in the comments below.

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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. Images are courtesy of Shutterstock, TradingView.