EOS Price Analysis: Waiting for a Triangle Breakout
EOS has formed lower highs and higher lows to consolidate inside a symmetrical triangle on its 4-hour time frame. Price is bouncing off the top and might be due for another dip to support around 2.600.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that support is more likely to hold than to break. The moving averages are also close to the bottom of the triangle to add to its strength as a floor. If it holds, another bounce back to the top might follow.
RSI is on the move down to indicate that sellers are regaining the upper hand. This could be enough to take price back down to the triangle support before oversold conditions are seen and buyers return. Similarly stochastic is heading south so EOS price might follow suit.
Cryptocurrencies have seen a bit more green than usual over the past few days as volatility is picking up and sentiment in the industry appears to be improving. For EOS, this was enough for bulls to defend the triangle bottom but not enough to take it past resistance. Still, sustained bullish pressure might spur a break higher and a rally that’s the same height as the chart pattern.
So far there appear to be no major developments specific to EOS so its rallies could hinge on whether or not the rest of its peers are able to keep climbing. Bullish forecasts are being renewed for bitcoin, which could allow EOS to ride on the improving sentiment if it keeps up.
As for the general financial markets, geopolitical tensions related to Brexit and trade talks are a persistent source of uncertainty and risk aversion. Of course there have been instances wherein cryptocurrencies were able to benefit from this type of environment.