The EOS price had been consolidating since reaching a high on January 15. The recent short-term movement suggests that the consolidation phase has ended and EOS will move towards new highs.
EOS Highlights
- The price broke out from a descending wedge.
- There is strong support at 4000 satoshis.
- There is resistance at 4500 and 5100 satoshis.
- Long- & short-term moving averages (MA) have made a bullish cross.
Well-known trader @damskotrades outlined the EOS price chart stating that the price has broken out from its consolidation phase and will continue moving upward in the future.
$EOS || $BTC Binance X @Altcointraders_
POP this is what I wanted to see!
Nice break out from the consolidationLet’s do it EOS🔥 pic.twitter.com/XcPggBChh5
— CryptoAmsterdam (@damskotrades) January 27, 2020
How long will EOS continue to increase? Keep reading below if you want to find out.
Previous Breakout
The EOS price moved above the 4000 satoshi resistance area on January 14 and returned to validate it as support five days later. The validation only took the form of a long lower wick and the price moved upwards afterward. This is a bullish development since the lower prices were bought up quickly.
In addition, the price is trading well above the 100- and 200-day moving averages (MAs), which have just made a bullish cross. This suggests that the price has likely begun a new upward move.
Sponsored SponsoredThe closest resistance area which also acts as the previous breakdown level is found at 5100 satoshis.
Current Breakout
After the price breakout, EOS followed either a descending channel or a descending wedge.
The exact price pattern now has been rendered insignificant, since the EOS price has broken out of both and validated them as support afterward. This could indicate that the consolidation phase has ended and EOS will move towards new highs.
SponsoredWe successfully predicted this breakout in our previous analysis.
Similar to the daily chart, the relatively short-term 100- and 200-hour MAs have made a bullish cross and the price is trading above them.
This is a bullish sign that suggests that the price will increase towards the 4500 satoshi resistance area soon.
Future Movement
Sponsored SponsoredIn the short-term, the EOS price is trading inside an ascending channel, being very close to its resistance line.
As long as the price stays inside this channel, the future price increases are expected to be gradual. A breakout from the channel would accelerate the rate of increase. We think that the breakout will transpire soon.
Due to the presence of several long lower wicks, we do not think the prudent play would be placing a stop loss below the ascending support line since it runs the chance of the price triggering it and moving back upward.
Rather, the optimal place for stop loss placement would be below the 4000 satoshi area which was now turned to support.
To conclude, the EOS price seems to have finished its consolidation and looks ready to resume the movement following the breakout of January 14. We believe it will soon reach at least one of the resistance areas outlined above.
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