EOS / USD hits long-term purchase zone

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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.

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Important points

  • 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.

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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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