EOS price remained well bid above the key $7.000 support area. EOS is likely to accelerate higher above $7.600 in the near term similar to bitcoin, ETH, XRP and litecoin.
Key Talking Points
- EOS price started a minor downside correction after it traded as high as $7.598 (Data feed of Kraken) against the US Dollar.
- There is a crucial ascending channel forming with support near $7.080 on the 4-hours chart.
- The price is likely to remain in an uptrend and it could even surpass $7.400 and $7.600.
EOS Price Analysis
In the past couple of days, there were solid gains in bitcoin, EOS, Ethereum and litecoin against the US Dollar. EOS price traded above the $7.000 and $7.200 resistance levels to move into a positive zone.
The chart above indicates that EOS price even broke the $7.4500 resistance level and 100 simple moving average (4-hours). It traded as high as $7.598 before starting a downside correction.
It broke the $7.400 support and the 50% Fib retracement level of the recent leg from the $6.634 low to $7.598 high. However, the $7.000 support area acted as a strong buy zone and prevented downsides.
Moreover, the 61.8% Fib retracement level of the recent leg from the $6.634 low to $7.598 high acted as a support. At the outset, there is a crucial ascending channel forming with support near $7.080 on the 4-hours chart.
As long as the price is above the channel support and $7.000, it remains in an uptrend. An immediate resistance is near the $7.400 level, above which there are chances of more gains above the $7.500 and $7.600 levels.
The next key resistances are $7.775 and $7.850. On the downside, the main support for EOS is near the $7.000 level, below which the price might trade back towards the $6.750 support.
Overall, EOS price is trading with a positive bias above the $7.000 support. Therefore, there are high chances of it gaining momentum above the $7.400 and $7.600 resistance levels in the near term.
The market data is provided by TradingView.