EOS (EOS) Technical Analysis: Breaks Over 90,000 Sats, Golden Crossover Getting Close

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EOS is standing out as the best performing asset among the top 100 cryptocurrencies today, with an impressive 13% gain against BTC and a 2X increase in daily trading volume from $1.1 Billion to $2.3 Billion. The sudden shift in market sentiment has helped drive the price action over 90,000 Sats for the first time in over 4 months, and edge the asset towards a golden crossover between the 50 and 200 EMA lines on the 1D EOS/BTC chart. If these two lines converge, it will likely signal the start of a very strong bullish phase.

The reason for this sudden surge in performance is not entirely obvious however, recently Block.One CEO, Brendan Blumer, posted a reassuring message on the EOS community telegram entitled ‘Great Things Take Time’. In his address, Blumer states that,

“Healthy growth… takes time and patience” and that going into 2019 he will “continue to test the boundaries of [himself] and the B1 team to deliver as much positive change and restoration of freedoms as possible; Dan too.”

Over the last 2 days the crypto market has swelled by more than $7 Billion, Bitcoin is now tantalisingly close to breaking the psychological $4,000 mark and overall bullish sentiment appears to be returning after a long hiatus.

The Story So Far

On the 1D EOS/BTC chart we can see that the asset recently broke bullish out of an ascending triangle pattern (red shaded area) on February 9, after tracking along a strong uptrending support and consolidating against a flat resistance at 73,925 Sats.

From there the price action continued to make higher lows over the next 8 days as it corrected from the pattern breakout, before bulls initiated a second impulsive movement towards the 90,000 Sats mark.

The Story Now

Catching up with the asset today we can see that bulls were able to carry yesterday’s buying momentum into this morning, helping to bank a further 7% gain against BTC before hitting a a major resistance at 95,662 Sats. This particular resistance held back EOS way back in September 2018, after bulls attempted to recover from the heavy bear market that occurred during April through to August last year. Right now it’s holding back EOS again, this time from reaching a new 6-month high and potentially pushing on further. For now the asset is holding inside a new range (blue shaded area) between the 90,000 and the 95,662 Sats levels.

Looking at a number of indicators over 4 hour candles it seems that momentum is still building behind the asset and that a third impulse movement could start soon;

  • The 12MA and 26MA lines are still bullishly bifurcated on the MACD indicator, and above the signal line.
  • On the Chaikin Money Flow indicator we can see that buying pressure is starting to increase again after this morning’s brief intraday correction.
  • Buying volume is showing a marked increase in the last 4 hours.
  • Parabolic SAR dots are still holding beneath the price action.

A third bullish impulse move could provide the force needed to drive the 50 EMA line over the 200 EMA line, and create a golden crossover. Whenever these two lines cross each other over long time periods it usually foreshadows very strong price movements. Looking back to when the two lines last crossed on August 8, 2018, the 50 EMA passed bearishly through the 200 EMA line - known as a ‘Death Cross’. Exactly 120 days later EOS hit a bottom at 47,190 Sats, representing a total 58.82% loss in value before recovering. A golden crossover therefore, could signal the start of a new phase for EOS as it begins to recuperate losses made throughout 2018 and potentially deliver promising returns.

EOS (EOS) Price Targets

All ROI’s are calculated from the asset’s current value at 91,355 Sats (AToW).

PT1: 95,662 Sats (4.71% ROI)
PT2:
102,000 Sats (11.65% ROI)
PT3:
104,775 Sats (14.69% ROI)

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