EOS (EOS) Technical Analysis: Closing in on Key Resistance, Can Bulls Hold on to Today's Momentum?

Published on 01 October 2018 by Cryptovest Staff

Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses incurred as a result of this information.

EOS is one of the few coins in the top 10 that has held its gains in the last 24hrs, currently up 1.64% against BTC. Cardano (ADA) and Litecoin (LTC) were also strong performers through the morning but both have recently plunged into the red as the market took a sudden dip. In the news this week leading crypto exchange, Bitfinex, released the beta of their new decentralized exchange called EOSFinex, which is built using EOS.io technology. This may have been a reason why the asset has managed to hold on to its bullish support today, while the majority of other altcoins have sunk.

With EOS now within a 5% range of a key triangle pattern resistance, can bullish momentum sustain through the weekend and test this area, or will the asset unravel as bulls lose steam at this critical level? Let’s see what the chart tells us.

Catching up with the 4hr EOS/BTC chart now, we can see that the asset has held on to its upward trajectory throughout today’s trading and is still looking promising to test the triangle pattern resistance.

The triangle pattern that EOS has been tracking inside of since August is a typical bearish continuation formation, with EOS entering into the triangle from a downtrend. However, in some instances, assets can reject these patterns and actually break out above the resistance line if buyers are able to power through the sell orders when they retest the key level.

Taking a look at the indicators now over 1hr candles, we can see that signals are still favoring the bulls in the short-term:

  • CMF: The indicator line is spiking above the signal line as buying pressure continues to rise.
  • Kumo & Tenkan-Sen: Candles have already climbed through the resisting Kumo and are tracking well against the new supporting cloud beneath. The Tenkan-Sen line is also still holding well above the Kijun-Sen line, which is a good sign of bullish momentum.
  • RSI: The RSI has been traveling sideways for most of today as volatility remains low, but this could be an early sign of bulls gathering before a strong impulse movement towards the breakout area.
  • Bollinger Bands: The low volatility has also caused the Bollinger Bands to constrict temporarily, which can happen just before an asset makes a much stronger move.

EOS (EOS) Price Targets

All price targets are set from the 87,500 Sats mark where the asset is currently valued.

Price Target 1: The 89,110 Sats mark has been a strong resistance historically over the last few weeks and will be the first level that bulls need to overcome before retesting the pattern resistance above. (1.84% ROI)

Price Target 2: 91,048 Sats mark (4.05% ROI).