HomeAltcoin NewsEOS Price Analysis: Chances of Dip Before Fresh Rise

EOS Price Analysis: Chances of Dip Before Fresh Rise

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  • EOS price surged by more than 40% this week and broke $4.00 and $5.00 hurdles against the US Dollar.
  • The price even tested the $6.00 resistance and formed a new yearly high at $6.093.
  • There is a major connecting bullish trend line formed with support at $5.20 on the 4-hours chart of the EOS/USD pair (data feed from Binance).
  • The pair might correct in the short term before it could resume its upside above $5.50 and $5.60.

EOS price broke many resistances and surged by more than 40% against the US Dollar. The price is currently trading above key supports, with chances of a downside correction before fresh rise.

EOS Price Analysis

The recent storm in the market sparked a strong rally in bitcoin, Ethereum, ripple, litecoin and EOS price against the US Dollar. Earlier, EOS broke the $3.80 resistance level and settled above the $4.00 pivot level. Later, there was a break above the $4.20 level and the 55 simple moving average (4-hours). Finally, buyers gained control and pushed the price above the $4.425 resistance to start a strong rally. The price surged by more than 40% and climbed above the $5.00 and $5.50 resistance levels.

The trend was significant since the price even broke the $5.80 and $6.00 levels. A new yearly high was formed at $6.093 and recently the price corrected lower. It declined sharply below $5.50 and the 50% Fib retracement level of the recent surge from the $4.11 low to $6.09 high. However, the $4.80 support area acted as a strong buy zone. Besides, the 61.8% Fib retracement level of the recent surge from the $4.11 low to $6.09 high also acted as a support.

The price retreated from lows and climbed back above $5.00 and $5.20. There is also a major connecting bullish trend line formed with support at $5.20 on the 4-hours chart of the EOS/USD pair. The pair is currently trading above the trend line support and $5.22. However, it seems to be facing offers near $5.40 and $5.50. A close above the $5.50 is must for a fresh increase towards $5.80 and $6.00.

EOS Price Analysis Chart

Looking at the chart, EOS price might face another round of selling and it could slide below the $5.00 support. Having said that, dips are likely to find a strong support near the $4.80 and $4.75 levels. The next key support is near the $4.425 (the previous resistance).

Technical indicators

Hourly MACD – The MACD for EOS/USD is currently reducing its bullish slope, with a positive bias.

Hourly RSI (Relative Strength Index) – The RSI is currently correcting lower and it may test the 50 level.

Major Support Levels – $4.80 and $4.45.

Major Resistance Levels – $5.50 and $5.80.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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