On July 7, 2019, the EOS price reached a high of 5240 satoshis. A rapid decrease ensued the next day. By July 11, the price had reached lows of 3874 satoshis. After trading sideways for five days, another decrease began on July 16.
At the time of writing, EOS was trading at 3858 satoshis.
How long will this decrease continue? Keep reading below in order to find out.
For our previous analysis, click here.
EOS Price: Trends and Highlights for July 17
- EOS/BTC is following a descending support line.
- There is bullish divergence developing in the RSI and the MACD.
- Short- and long-term moving averages have made bearish crosses.
- There is significant support at 3000 satoshis.
Descending EOS Price Support
A look at the daily time-frame shows that the EOS price has been following a descending support line since April.
At the time of writing, the EOS price was trading right on this line. It has been doing so with minimal fluctuations since July 11.
A closer look at the daily candle for July 16 shows that buyers made an attempt at a reversal.
While the price made a low of 3505 satoshis, it bounced upward to close at 4031 satoshis during the same day.
This created a hammer candlestick, which when found in a downtrend is considered a reversal pattern.
However, the closing prices were still lower than the opening ones, somewhat reducing its validity.
Will this be enough to initiate a reversal?
A look at the moving averages (MA) suggests that EOS is in a downtrend.
Both the short- (10- & 20-) and the long- (100- & 200-) day MAs have made bearish crosses, on June 14 and July 11, respectively.
The EOS price has been decreasing since June 10, facing very close resistance from the 10-day MA.
It has made two attempts at moving above it, but both were unsuccessful.
The longer-term bearish cross has more significant implications for the EOS price.
It suggests the beginning of a longer period of decrease for the price.
However, a look at momentum indicators shows that an upward move will soon occur, even if it is short lived.
Both the RSI and the MACD have been generating bullish divergence since June 25.
The fact that this divergence is visible in both indicators further affirms its validity.
Long-Term EOS Price Support
A look at the weekly time-frame shows that EOS is trading at its lowest levels since the beginning of 2019.
Additionally, it shows one significant support area.
The area is found near 3000 satoshis. If the EOS price continues to decrease at the rate predicted by the support line, it is likely to reach this area.
Afterward, it is plausible that it will begin an upward move.
The EOS price has been decreasing since the beginning of June.
It is following a descending support line.
According to our analysis, it is likely that the price reaches the support area outlined above before initiating an upward move.
Do you think EOS will initiate a reversal? Let us know in Telegram.
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.
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