EOS price surged higher this past week above the $5.00 and $5.50 resistances against the US Dollar. EOS is trading in a range and it seems to be preparing for the next break versus USD, BTC and ETH.
Key Talking Points
- EOS price is placed in a positive zone above the $5.40 and $4.85 supports (Data feed of Kraken) against the US Dollar.
- There is a crucial contracting triangle in place with support at $5.40 on the 4-hours chart.
- The price is setting up for the next break either above $5.70 or towards the $4.85 support level.
EOS Price Analysis
This past week, there was a strong rally in bitcoin, ripple, litecoin, Ethereum and EOS against the US Dollar. Earlier, EOS price consolidated below the $4.20 and $4.40 resistance levels. Later, it surged higher and broke many resistances such as $4.40, $5.00 and even $5.50.
The chart above indicates that EOS price climbed higher sharply after it broke the $4.40 resistance and settled above the 100 simple moving average (4-hours). Buyers gained traction and pushed the price towards the $6.00 level.
A new 2019 high was formed at $5.964 before the price started a downside correction. It declined below the $5.50 and $5.20 support levels. There was even a break below the $5.00 level before buyers appeared near the $4.85 level.
A swing low was formed at $4.853 and recently the price moved higher. It broke the $5.50 level and the 50% Fib retracement level of the last decline from the $5.964 high to $4.853 low.
However, the upside move was capped by the $5.70 level and the 76.4% Fib retracement level of the last decline from the $5.964 high to $4.853 low. At the moment, there is a crucial contracting triangle in place with support at $5.40 on the 4-hours chart.
Therefore, EOS price seems to be preparing for the next break either above the $5.70 resistance or below the $5.40 support. If buyers gain traction above $5.70, the price could even break the $6.00 resistance. If not, the price is likely to revisit the $4.85 support area in the near term.
The market data is provided by TradingView.