(EOS/BTC) EOS Looking Ready To Dive After Cracks Begin To Show in Support By Cryptovest

EOS Technical Analysis: (EOS/BTC) EOS Looking Ready To Dive After Cracks Begin To Show in Support

On the surface of it EOS is looking good this morning against BTC, currently up 5.36% and one of the only positive gainers in the top 20 today.

However, when you dig deeper into the chart we can see EOS is battling hard against a solid resistance level that has plagued the price action’s progress since the project’s inception.

In the 4hr chart above we can see EOS returning to the well-tested ceiling level at 130,000 Sats where we’ve seen it fail to breach beyond it over 4 times now since the token launched last year. This will no doubt create a psychological level for many EOS traders as they anticipate heavy selling pressure from triggered auto-trades and exiting short-term investors.

If the trend continues in the way it’s going, we should expect the bearish flag to break down to the same length as the flagpole, with an estimated price target around the neckline at 54,000 Sats.This would constitute a decline of -58.46% from the current market value of EOS, with the potential to drop further as the asset also completes a bearish double top pattern.

The price action is currently hovering within the first recommended sell point area at the 130,000 resistance, as the market is waiting patiently for a breakout confirmation. Once the downtrend is confirmed we’re likely to see the price plummet to the lower support initially, at the 0.618 fib level / 100,000 Sats, which sits at the intersection between the dotted uptrending support and the projected declining candle activity. This area is our designated second selling point before EOS tumbles down to the final price target.

Diving into the current movement, MACD on 30min candles is showing a bearish divergence between the faster MA and the slower moving MA, indicating that short-term momentum is slowing down as the bulls begin to lose confidence against the sellers.

RSI is also swinging down towards the lower quartile of the channel.

This gives us a fairly good indication that the chances of EOS staying positive in the market today are pretty slim.

EOS Price Prediction

Support for EOS has failed at the most critical time, as the asset hoped to break clear of the long-standing resistance that has weighed heavily on its shoulders since the token launched.

To recap the price targets. I think we can expect the first downtrend to retrace back to the 0.618 fib level at 100,000 Sats before we could see some slight rebound in the token’s price.

From there, we’re likely to see the bears take over again and drive the price down further to the neckline of the double top at 54,000 Sats as investors cash out losses into more profitable altcoins that are currently performing well on the market.

If BTC, ETH and other altcoins continue to make positive gains in the coming weeks then EOS could suffer further losses, as it finds its next support level way down at 40,000 Sats ($3.58 at current BTC market value).

This article appeared first on Cryptovest

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