EOS Price Analysis: Uptrend Intact, Buying Dips Favored
EOS price started a sharp downside correction from the $4.40 high against the US Dollar. However, EOS is still above key supports and it could bounce back versus the USD, BTC and ETH.
Key Talking Points
EOS price declined below the $4.00 and $3.80 support levels recently (Data feed of Kraken) against the US Dollar.
There is a major connecting bullish trend line formed with support at $3.35 on the 4-hours chart.
The price remains supported on dips and it could bounce back above $3.60 and $3.80.
EOS Price Analysis
After a solid upward move, bitcoin, ripple, EOS and other cryptocurrencies faced sellers against the US Dollar. EOS price declined from the $4.40 swing high and broke the $4.00 and $3.80 support levels.
The chart above indicates that EOS price moved into a bullish zone, with a close above the $3.20 support and the 100 simple moving average (4-hours). Recently, it climbed above $4.20 and later corrected below the $3.80 support.
There was a break below a key connecting bullish trend line with support at $3.80 on the 4-hours chart. The pair even broke the $3.50 support and the 50% Fib retracement level of the recent wave from the $2.70 low to $4.40 high.
However, there are many supports on the downside near the $3.20 and $3.25 levels. There is also a major connecting bullish trend line formed with support at $3.35 on the same chart.
More importantly, the 100 simple moving average (4-hours) is at $3.20 and the 61.8% Fib retracement level of the recent wave from the $2.70 low to $4.40 high. Therefore, dips in EOS price towards the $3.20 support could find buyers.
On the upside, an initial resistance is near the $3.50 level, above which EOS price could test the $3.80 level. The main resistance for buyers is near the $4.00 level, followed by $4.20. Having said that, there are a few bearish signs visible on the lower time frame charts of bitcoin, Ethereum, ripple, BNB, EOS and other cryptocurrencies, which may increase pressure on buyers in the short term.