- EOS price declined heavily this past week and even broke the $6.000 support against the US Dollar.
- The price tested the $5.4000 support area and it is currently correcting towards $6.000.
- There is a major contracting triangle forming with resistance near $6.250 on the 4-hours chart of the EOS/USD pair (data feed from Binance).
- The pair is likely to make the next move either above $6.250 or below $5.850 in the near term.
EOS price is holding a few important supports against the US Dollar and bitcoin. The price must break the $6.250 resistance level to start a decent upward move.
EOS Price Analysis
This past week, there was a downside break in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. EOS price declined sharply below the $6.250 and $6.000 support levels. There was even a close below the $6.000 support and the 55 simple moving average (4-hours). It traded towards the $5.550 and $5.400 support levels. A new swing low was formed at $5.403 and the price recently started an upside correction.
Bitcoin is up more than 15% from lows, but EOS is struggling. It broke the $5.800 resistance level plus the 23.6% Fib retracement level of the downward move from the $7.803 high to $5.403 low. However, it faced a strong resistance near the $6.250 resistance. It even failed to stay above the $6.200 level and the 55 simple moving average (4-hours).
Moreover, there was no test of the 50% Fib retracement level of the downward move from the $7.803 high to $5.403 low. At the moment, there is a major contracting triangle forming with resistance near $6.250 on the 4-hours chart of the EOS/USD pair. If there is an upside break above $6.250, the price could start a strong upward move in the near term.
The next key resistance is near the $6.600 level, above which it could test the $7.000 resistance. Conversely, if there is a downside break below the $5.850 and $5.800 supports, the price could decline again. The main support is near the $5.400 level, below which it could slide towards the $5.200 level.
Looking at the chart, EOS price is clearly preparing to make the next move either above $6.250 or below $5.850 in the near term. If bitcoin price continues to rise and breaks $12,000, there are chances of a fresh increase in EOS above $6.250.
Technical indicators
Hourly MACD – The MACD for EOS/USD is currently losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just below the 50 level, with a flat structure.
Major Support Levels – $5.800 and $5.400.
Major Resistance Levels – $6.250 and $6.600.
