EOS price dipped recently after it failed to stay above the $5.320 support against the US Dollar. EOS is correcting lower and it seems to be preparing for the next break versus USD, BTC and ETH.
Key Talking Points
- EOS price recently dipped steadily towards the key $5.000 support area (Data feed of Kraken) against the US Dollar.
- There is a key bullish trend line formed with support at $5.070 on the 4-hours chart.
- The price must break the $5.380 resistance and the 100 simple moving average (4-hours) to climb higher.
EOS Price Analysis
Recently, there was a downside correction in EOS and other cryptocurrencies (bitcoin, ripple, Ethereum and litecoin) against the US Dollar. EOS price dipped below the $5.400 and $5.220 support levels to enter a short term bearish zone.
The chart above indicates that EOS price even settled below the $5.400 level and the 100 simple moving average (4-hours). It traded close to the key $5.000 support level and formed a low at $5.004.
Finally, there was a recovery above the $5.150 level and the 23.6% Fib retracement level of the last drop from the $5.634 high to $5.004 low. However, the price seems to be facing a strong resistance near the $5.300 and $5.320 levels.
The 50% Fib retracement level of the last drop from the $5.634 high to $5.004 low also acted as a strong resistance for buyers. A break above the $5.320 level might push the price towards the next important resistance near $5.380 and 100 simple moving average (4-hours).
There is also a connecting bearish trend line near $5.400 on the 4-hours chart. Therefore, a close above the trend line and $5.400 is must for a fresh increase towards the $6.000 level.
On the downside, there is a key bullish trend line formed with support at $5.070 on the same chart. If EOS price fails to stay above the trend line and the $5.050 support, there is a risk of more losses below the $5.000 support level in the near term. The next key support is at $4.855, followed by $4.752.
The market data is provided by TradingView.