EOS Price Analysis: EOS/USD Approaching Next Key Break
EOS price declined below $8.50 recently against the US Dollar. EOS/USD is approaching a key break either above $8.50 or below $8.00.
Key Talking Points
EOS price is placed nicely above the $7.80 and $8.00 support levels (Data feed of Kraken) against the US Dollar.
There is an important contracting triangle forming with resistance near $8.40 on the 2-hours chart of the EOS/USD pair.
The pair has to move above the $8.40 and $8.50 resistance levels to start a fresh upward wave.
EOS Price Analysis
After forming a high near the $9.00 level, EOS price declined slowly against the US Dollar. The EOS/USD pair fell below the $8.50 support before it found buyers near the $8.00 support.
The chart above indicates that the price formed a decent support near $7.90-8.00 and recovered. It traded above the $8.20 resistance and the 23.6% Fib retracement level of the last drop from the $8.95 high to $7.95 low.
There was also a break above the 100 simple moving average (2-hours), but the upside move was capped by the $8.50 resistance. Moreover, the 50% Fib retracement level of the last drop from the $8.95 high to $7.95 low also acted as a resistance.
The price dipped a few points and later started consolidating in a range below the $8.50 resistance. More importantly, there is a key contracting triangle forming with resistance near $8.40 on the 2-hours chart of the EOS/USD pair.
A break above the triangle resistance followed by a close above $8.50 is needed for EOS buyers to gain bullish momentum. The next resistance sits near the $9.00 level, above which the price may perhaps move towards the $10.00 handle in the coming days.
On the flip side, if the price moves down and breaks the triangle support at $8.00, there could be heavy declines. The next support is at $7.60, below which, sellers could push the price towards the $7.00 level.
Overall, EOS price is preparing for the next move either above $8.50 or below $8.00.