EOS was consolidating inside a falling wedge pattern previously highlighted, indicating that an uptrend is in the cards. Price hit resistance around 9.3764 and is retreating, possibly making a correction to the broken resistance.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is closest to the broken wedge top, which might now hold as support. If so, EOS could resume the climb to the swing high or higher.
However, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend still has a chance at resuming.
Then again, the gap between the moving averages is narrowing to indicate weaker bearish pressure and hint at a potential upward crossover. These dynamic inflection points are also around the 38.2% to 50% Fib levels, which might be enough to keep losses in check.
RSI is still pointing down to indicate that selling pressure is in play, possibly drawing EOS lower from here. Stochastic is also heading south so EOS price might follow suit until the oscillator hits oversold levels.
Cryptocurrencies have been on a good run for the most part of July, with some saying that the industry has already bottomed out. However, others dismiss this as a short squeeze or dead cat bounce.
The focus has been on institutional funds these days as it was reported that BlackRock, the world’s largest asset manager, has formed a team to look into investment opportunities in the space. Further updates like this could continue to prop EOS and its peers higher in the coming weeks as it fuels investor optimism and projections of higher liquidity.
Meanwhile, the dollar has been on shaky ground after Trump blasted the Fed for hiking rates and nullifying the progress made in fiscal reform.