EOS price has fallen in the past few weeks, down more than $ 10.00. It is now reaching an important support area near $ 3.50-4.00 for buyers to take a position.
- EOS launched a major bearish wave after trading at $ 23.20 in April 2018.
- There is a bearish channel with resistance at $ 6.10 on the daily chart.
- Buyers must closely monitor the $ 3.50 to $ 4.00 support zone for a possible response.
EOS price analysis
In the past few weeks, we at EOS have seen a significant downward trend of well over USD 15.00. Price cut most of its earnings this year and fell below the $ 10.00 support.
The daily diagram of EOS / USD indicates that price has cleared the 76.4% Fibonacci retracement level of the ride from a low of $ 3.96 to a high of $ 23.22 and opens the doors to a full test of $ 3 , Has opened 96 USD.
Chart from TradingView, Kraken
The price is now well below the $ 8.50 pivot level and 50-day simple moving average, which is a strong bearish sign. More importantly, the price is following a bearish channel with a resistance of $ 6.10 on the daily chart.
However, the price is now approaching a crucial support zone near $ 3.50-4.00, which is the base for the last major ride of more than $ 15.00. Therefore, there is a high likelihood that buyers will take a stance near the $ 3.50-4.00 zone.
Worst-case scenario, there could be an awkward surge below the USD 3.50 support zone before the price begins to rebound. On the upside, a break above the channel support at $ 6.10 is needed for a decent rebound.
Above the channel resistance, the 50-day SMA is at $ 8.00 to act as the main obstacle. If EOS buyers manage to push the price back above $ 8.00-8.50 it will most likely move into a bullish zone.
In the short term, the price could drop further towards USD 3.50-3.90 as market sentiment is very bearish. However, in the medium term, EOS will hit key support and buy levels above $ 3.00. The daily RSI for EOS / USD is close to levels (20) not seen in the past few months, indicating a strong oversold condition.
Also read: Sentimental Analysis for Bitcoin, ether,Ripple, EOS, Stellar
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