Cryptocurrency

EOS falls after breaking through long-term resistance

Navigation

Will EOS Breakout? Forming a Clean Cup and Handle Pattern

EOS falls after breaking through long-term resistance

EOS falls after breaking through long-term resistance
CONTENT

  • EOS failed to confirm breakout of long-term resistance line

  • Long-term support is at $ 2.30

  • Technical indicators on the daily chart paint a bullish picture

International consortium of news organizations developing transparency standards.

Altcoin EOS (EOS) broke through the long-term downtrend resistance line, but then pulled back again. Despite the fall, the integrity of the bullish EOS move was not violated.

Long term rejection

EOS has been following the downtrend resistance line since May 2019. Price broke this line in July, reaching a high of $ 3.65 in mid-August. However, the quotes soon returned below the line, which means that the upward breakout turned out to be false..

Curiously, before the breakout, a similar false breakout of the $ 2.30 support was recorded with a subsequent resumption of growth. Price now appears to intend to retest this support.

EOS falls after breaking through long-term resistance

EOS EOS Chart by TradingView

There is a sign of another deviation on the daily chart. Altcoin has been following the upward support line since March 13, breaking its integrity on September 2. However, by now the price has already returned above this support line..

Moreover, there is insignificant support in the $ 2.7 area, above which the price is located. As long as the quotes are trading above the upward support line, the trend is considered bullish.

Technical indicators on the daily chart paint a bullish picture:

  • MACD is rising and is giving signals of bullish divergence
  • Stochastic RSI has formed a bullish crossover

At the same time, the RSI is not yet showing signs of a bullish reversal.

Wave analysis

Cryptocurrency trader @Cryptocapo_ notes that EOS has started a bullish trend and will continue to rise to $ 5.80 with a subsequent target of $ 16.

Wave analysis shows that between April 2018 and March 2020, the price completed a complex correction in the W-X-Y shape (highlighted in red on the chart). The beginning of the correction was marked by a record high of $ 23.27.

According to long-term wave analysis, the altcoin started forming a bullish impulsive structure on March 13 and is now in the third wave stage, which looks extended. If it falls below the June 26 low of $ 2.18, this wave analysis will lose its relevance.

However, due to the length of the previous wave X, which indicates the continuation of the correction and the prospects for growth at least to the level of $ 5.73.

EOS falls after breaking through long-term resistance

So, while it is difficult to estimate the probability of the coin’s rise to the $ 16 mark, but in the end the price is likely to reach the target at $ 5.80.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Altcoin EOS (EOS) broke through the long-term downtrend resistance line, but then pulled back again. Despite the fall, the integrity of the bullish EOS move was not violated.

Long term rejection

EOS has been following the downtrend resistance line since May 2019. Price broke this line in July, reaching a high of $ 3.65 in mid-August. However, the quotes soon returned below the line, which means that the upward breakout turned out to be false..

Curiously, before the breakout, a similar false breakout of the $ 2.30 support was recorded with a subsequent resumption of growth. Price now appears to intend to retest this support.

Similar articles

Similar articles