(EOS/BTC) Pre-mainnet Launch Support Beginning To Arrive After Whale Market Manipulation By Cryptovest

EOS Technical Analysis: (EOS/BTC) Pre-mainnet Launch Support Beginning To Arrive After Whale Market Manipulation

EOS has had a pretty poor month so far, with Bitcoin’s drop below $9,000 tying up the rest of the market and investor support flagging in the run up to the mainnet launch, scheduled in 15 days time.

Since this morning however, things seem to be turning around; with the EOS token clawing back 5.87% of its earlier losses against BTC after finding the bottom at 147,000 Sats yesterday.

Could this be the start of the pre-launch hype every EOS hodl’er has been waiting for?

Let’s take a look.

Over 45min candles, we can see EOS has been tracking inside a falling wedge pattern since the end of April, after peaking at 244,000 Sats.

Above the white sloping resistance line we can see a break out area (green triangle), where the price action made an early attempt to depart from the downtrend along the 0.618 fib level support. At this stage, the 15 and 50 EMA indicators were looking favourable for a bullish continuation over the 200 EMA until a huge sell order was suddenly placed; causing EOS to plummet to the lower trending white support line, near the 0.382 fib level at 155,445 Sats.

This was most likely the result of a Whale investor attempting to manipulate the EOS market by creating panic so that the token’s value would drop; allowing the Whale investor to then re-enter into EOS at a much cheaper price later.

The following day, EOS continued to tumble with steep sell-offs from perhaps the same and/or other Whale investors (second red arrow). During this second wave of bearishness, we can see that the wick of one of the red candles briefly touched the base support below at 147,000 Sats before quickly retracing back to the main candle body, as bullish support tried to prop up the token’s value against these attacks.

After the Whales had exhausted themselves, the asset continued to lose momentum as confidence from the wider community began to thin.

Yesterday however, we finally saw bullish sentiment return following a 10% gain against BTC. This recent market movement has driven the 15 EMA (white) above the 200 EMA (red), as short-term momentum begins to stack up again in EOS’s favour.
A stronger bullish confirmation will come once the 50 EMA (blue) converges above the 200 EMA.

RSI was indicating the opening bull run off the bottom as overbought, but has since retracted back into the middle of the channel.

MACD is looking bearish over 15min candles in the current price trend, with a likelihood that we’ll see the asset return to the 0.382 fib level, before any further bullish movement.

On the Ichimoku indicator we can also confirm a bearish crossover between the Tenkan-Sen and Kijun-Sen, which further supports this prediction.

EOS Price Prediction

I think once EOS retraces back to the 0.382 fib level we should expect the falling wedge pattern to complete itself with a bullish reversal.

Our first price target for this outbreak is set at a well established resistance at the 170,500 Sats mark, just shy of the 0.5 fibonacci level. This is a 9.61% increase from the 0.382 fib support.

From there, the next price target is conservatively set at 180,000 Sats where EOS is likely to incur some stronger selling pressure at this key sats level, before moving on towards the 0.618 fib level. Overall this would deliver a 15.72% ROI from the 0.382 fib support.

This article appeared first on Cryptovest

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