On February 14, EOS reached a high of 53,210 satoshi but began to decline the following day. By February 19, the price reached an important support zone at 40,000 satoshi and up. Prices have been trading near this level since then.
Highlights of the EOS price
- Support at 40,000 satoshi.
- Price found support above the 200-day moving average.
- Transactions inside wedges descending.
- There is resistance at 46,000 satoshi.
- The RSI is rising.
Trader A.C.X has outlined the move of EOS, posting price charts with the caption “Needless to say much”. Similar caption for similar move of ADA yesterday.
No words needed. pic.twitter.com/JwWylgzVgC
– ◇ .A.C.X. ◇ (@ACXtrades) February 27, 2020
Verify the EOS breakout
On January 14, the EOS price broke out of the previous resistance zone at 40,000 satoshi. Prices continued to rise to 53,210 satoshi on February 14 and began to decline rapidly.
The price has bounced back twice to confirm a breakout of 40,000 satoshi between February 19 and February 26, creating a long low wick each time.
Moreover, the current support is underpinned by the presence of the 200-day moving average (MA), on which the price has also risen.
Therefore, as long as the price is trading above this support zone and the 200-day MA, we can consider the bullish movement and assume the price will keep going up.
The short term chart also rises and supports the possibility of further price increases. There are 2 main reasons for this:
Prices are trading inside the wedge, which is considered a bullish reversal pattern. The 6-hour RSI has created bullish divergences for the entire wedge time.
Because all the action is taking place right at the critical support zone, the breakout seems about to be imminent. The next resistance level is found at 46,000 satoshi.
The long-term move also increased, making the EOS chart full of hope for the possibility of price increases in different time frames.
The movement of the RSI is particularly interesting. The breakout initially occurred after a sharp divergence in the weekly RSI. After that, the index moved above 50, which is a sign that the price is in the long-term uptrend.
Although the price is currently below this level, there are only 3 days to close. Therefore, if the above short-term breakout occurs, the RSI will probably need to close at or above 50.
For long-term goals, the next resistance level is found at 60,000 satoshi, the previous breakout level. Prices have not traded above this level since June 2019. Measured from the current price, a move up to this level will generate an additional 50% profit.
In general, the EOS price has confirmed an important support area, which is essential to sustain the upside move. It has created a short-term reversal pattern, from which it looks like it will breakout to reach the above resistance areas.
Current EOS price | Source: Coinmarketcap
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Bitcoin Magazine | Beincrypto
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