EOS Struggles to Regain Footing After Rejection From Long-Term Resistance

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In Brief
  • EOS is facing long-term resistance at $8.5 and $14.8

  • Long-term indicators are bearish.

  • EOS/BTC has been falling since May 27.

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EOS (EOS) has been falling since May 12, when it was rejected by a long-term resistance level at $14.8. 

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The ensuing bounce has been weak, and the token has so far struggled to create any sort of bullish structure.

Long-term EOS rejection

EOS has been moving downwards since reaching a high of $14.86 on May 12. The high was made right at the 0.618 Fib retracement resistance level. The ensuing downward movement has been sharp, and the token reached a low of $3.58 on May 23, which amounted to a fall of 75% in only 11 days. 

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EOS has recovered slightly since, but has yet to reclaim any important horizontal levels. To the contrary, the $8.5 area was supposed to act as support, but has turned to resistance instead. 

In addition to this, technical indicators have turned bearish. The MACD & RSI are decreasing, the latter being below 50. Furthermore, the Stochastic oscillator has just made a bearish cross (red icon). 

Therefore, the long-term trend can be considered bearish.

Chart By TradingView

Wave count

Cryptocurrency trader @Mesawine1 outlined an EOS chart, stating that he is looking for a re-test of the $8.50 area for the upcoming upward movement.

Source: Twitter

The preceding downward movement does look like a five wave bearish impulse (highlighted in red). In that case, the ensuing bounce is likely an A-B-C corrective structure, as outlined in the tweet.

The most likely level for the top to be reached would be near $9.1. This is the 0.5 Fib retracement level when measuring the entire downward movement. 

In addition, it is the resistance line of a potential parallel ascending channel, in place since the aforementioned May 23 low. 

Afterwards, another downward movement could transpire.

Chart By TradingView

EOS/BTC

Likewise, the EOS/BTC chart shows a similarly bearish outlook. 

However, in this case, the token has already completed its bounce and is now in the process of completing the final downward movement. It has been decreasing since May 27, when it was rejected by the 18,880 satoshi resistance area, the 0.5 Fib retracement resistance level.

Technical indicators are bearish, supporting the continuation of the downward movement. 

The next closest support area is found at 9,300 satoshis.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

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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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