What EOS to consider - development and price analysis
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Disclaimer: The information presented does not constitute financial, investment, business or other advice and is the opinion of the writer only.
EOS at this time
- A support area from late September has been retested as resistance.
- The bulls may push once again to $1, but can they manage to pull it off?
EOS has been in a downtrend since mid-September, when the price dropped below the $1.38 support. At press time, the psychologically important $1 mark has defended a bit, but the overall trend remains bearish.
Over the course of the next week or two, it is likely that EOS will not be able to break above the resistance area it is heading towards. Bitcoin also faces significant resistance at $19,600 and $20,400. If Bitcoin sees significant selling pressure and drops below $19k, EOS is likely to follow BTC south on the price chart.
Will EOS continue raise?
On the 12-hour timeframe, the bounce off $0.94 over the past two weeks has seen the price establish a series of lower lows and higher highs in this same timeframe. Hence, the market structure is lower time frame and momentum is bullish. The RSI also rose above the neutral level of 50 to support this development. However, the A/D line has yet to break through the October resistance.
Looking at a higher timeframe chart, such as 1-day, shows that these highs are less significant. The prevailing bias is bearish and EOS will have to break above the lower high of $1.12 to change its structure to the upside.
Also, over the past three weeks, the price has repeatedly tested the $1.10 zone. Highlighted in red, this can be considered a pocket of liquidity. At the end of September, a test of this area saw EOS rise rapidly to $1.23 – up 11.8% north.
Likewise, when this area gave way, the bulls completely dried up and EOS headed straight for the $0.95 mark within a few days. A set of Fibonacci retracement levels (yellow) have been plotted based on EOS's move from $1.23 to $94. The 61.8% and 78.6% retracement levels are found at 1. .12 dollars and 1.17 dollars, marking them as a primary endurance belt.
The bears could use the confluence between the pocket of liquidity and the Fibonacci levels to enter a short position on a review of $1.1 a few days later, if a bearish order occurs. They may also consider a riskier trade and look for a short position around $1.10, with a invalidation placed above the $1.13 mark.
EOS what will happen in October
The development activity fluctuated between August and October. This is not good news for long-term investors. They want to see sustainability in the projects they seek to invest in. Social dominance is close to 0.04%. To sum it up, the inference would be that EOS is not a particularly popular project, despite being a $1 billion market cap token.
Price action suggests a downside in the coming days. An EOS move above $1.15 and back to $1.1 as support will invalidate this bearish view.
Oct 25, 2022