EOS (EOS) Technical Analysis: Saved by Key Support Area, Dan Larimer Exit Rumour Spreads FUD
Rumors of Block.one CTO Dan Larimer exiting EOS have been making the rounds over the past two days, after a Reddit post exposed messages from Larimer saying he was ‘exploring’ ideas of creating a new ‘hypothetical’ currency crypto token. So far nothing has been officially confirmed and EOS’ price action is yet to reflect any noticeable reaction to the news.
Today, the EOS asset is holding on to a marginal gain against BTC, currently up 1.15% after diving -19.75% over the last three days. For now the asset has returned to a long-standing key support area between the 71,000 and 67,000 Sats levels following the last two days of heavy sell-offs that pummelled EOS’ price by -20%. Here we may see bullish traders collect and attempt to upside recovery or the asset could continue unraveling as BTC remains uncertain around the $4,000 mark.
Diving into the 1D EOS/BTC chart we can see that during the peak of the recent bear market, when the Bitcoin Cash war was wreaking havoc across the entire crypto market, EOS bulls were actually putting up a remarkable fight to re-enter into the three-month-long pennant shape that it had been kicked out of on November 12.
In the image below, you can see the price action was gradually closing against the uptrending resistance level with increasingly higher lows, until the price crashed suddenly on November 27.
The 100 SMA line (blue) also had a critical role to play as bulls fought desperately to prop the asset up above this moving average. Had they succeeded, it would have been one of the few times EOS had been above this key level since June, and would have been a promising bullish signal for the asset over the short-term.
Looking at the chart indicators over 2hr candles, we can see that bulls have been able to make a successful recovery back on to the upper support of the current channel, with good momentum starting to build;
Top indicator: The 2hr RSI is showing a clear uptrend back into the index channel from the oversold region, as short-term buying momentum increases.
Middle indicator: On the MACD indicator, we can see that the 12MA (blue) has bullishly converged above the 26MA and is making a strong recovering back towards the signal line.
Bottom indicator: The Chaikin Money Flow line is also showing a clear uptrend towards the zero line as buying pressure outweighs the current bearish selling pressure.
From this we can assume that the asset is likely to continue correcting from the recent oversold moment. If intraday bullish momentum can continue, we could expect bullish traders to test the first key resistance above at 73,887 Sats soon.
From there, the 75,886 and 78,686 Sats levels appear to be the next most likely key resistances that bullish traders will need to overcome if EOS is to continue recovering.