EOS Price Analysis: Gearing Up for a Test of Support
EOS has been trading inside a range visible on the 4-hour chart, bouncing off support around 7.0000 and finding resistance at 9.2500. Price was rejected on its latest test of the top and might be due for another move to the bottom.
For now, EOS is hovering at the mid-range area of interest, where some buyers appear to be defending the floor. The 100 SMA is also in line with this area of interest and might continue to hold as dynamic support.
However, this shorter-term SMA is below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, the drop is more likely to carry on than to reverse. The 200 SMA is holding as dynamic resistance as well.
Then again, the gap between the moving averages is narrowing to signal slowing bearish pressure and a potential upward crossover. If that materializes, bullish pressure could kick in and might even be strong enough to spur a break of the top. The resulting rally could be of the same height as the range.
RSI is pointing down to reflect some selling pressure but is also moving sideways at the middle of its range, reflecting further consolidation. Stochastic is heading lower to show that sellers have the upper hand and could be strong enough to push for a move back to the floor or lower. A break below support could also lead to a drop that’s the same size as the range.
Cryptocurrencies have had a good run at the start of the month and also last week when institutional interest put the spotlight back on the industry. However, bitcoin appears to have left most of its altcoin rivals eating dust as it rakes in more of the gains in anticipation of the SEC decision on a bitcoin ETF.