EOS (EOS) Technical Analysis: Reaching Consolidation, can Bulls Pull Something off Here?

Published on 22 August 2018 by Cryptovest Staff

Investment Disclaimer

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 you may incur as a result of this information.

Over the last seven days, EOS has clawed back a modest 3.82% against BTC and is now contending with Stellar for the top #5 spot, who is only $300M behind EOS on the market cap league table. Can EOS hold on to its position over the coming weeks, or will Stellar continue its march forward and reshuffle the top-five cryptos? Let’s take a closer look at the charts.

On the 2hr EOS/BTC chart, the current price action at a glance is looking bearish, with red candles starting to line up after bullish EOS traders failed again to re-enter into the first resistance channel (red) above.

MACD is still below the signal line but the 2 MAs are now starting to fraternize as the gap closes between the buyers and the sellers. RSI is also giving us no clue as to where EOS could go over the next 24hrs, as the oscillator hovers in the lower half of the channel.

It’s only when you look more closely at particular indicators, that it looks like bulls may be about to make their move.

Bullish Signals

Early signs of a potential reversal can be construed by the very recent T/K crossing on the Ichimoku indicator, where candles are also starting to move towards the negative kumo stretching out ahead.

On the Parabolic SAR, signal dots are also appearing beneath the current trend indicating that buyers are out-matching sellers right now.

Perhaps the most interesting early reversal signal is coming from the sharp spiking activity on the Chaikin Money Flow indicator at the moment. This is usually a good confirmation that buying pressure is mounting, particularly now that the CMF indicator has passed above the zero line. Usually, this indicator can be used to spot deviations in momentum long before other signals.

  • Ichimoku Indicator: Early signs of a potential reversal can be seen with the recent T/K crossing and candles moving towards the negative kumo.
  • Parabolic SAR: Signal dots appearing beneath the trend indicate that buyers are currently out-matching sellers.
  • Chaikin Money Flow: Sharp spiking activity and a move above the zero line confirm mounting buying pressure.

While these are promising hints at a bullish reversal, we would still like to see more solid confirmations come from other indicators, to support this idea.

We still have a bearish divergence between the 15, 50 and 200 EMA lines. Although moving averages are lagging indicators, a crossover would definitely help us confirm that a strong uptrend is imminent.

  • EMA Divergence: A bearish divergence between the 15, 50 and 200 EMA lines remains. A crossover in these moving averages could confirm a strong uptrend.

EOS (EOS) Price Targets

All price targets are set from the 73,067 Sats mark, at the pullback level where we are measuring the Fibonacci extension from.

  • Price Target 1: 100% fib extension at 89,805 Sats (22.89% ROI)
  • Price Target 2: 123.6% fib extension to 93,775 Sats (28.30% ROI)
  • Price Target 3: 161.8% fib extension to 100,148 Sats (37.05% ROI)