EOS price analysis: EOS/USD bulls intimidated by DMA100 at $4.20
|- EOS/USD has been range-bound with bearish bias recently
- The critical long-term resistance is located at $4.20.
EOS has been pretty directionless lately. The 7th largest digital asset with the current market value of $2.7 billion is siting in a tight range, limited by $3.00 on the upside and $2.70 on the downside. EOS/USD has been unable ot move outside this channel since September 25.
Read also: EOS shows resilience as Block.one fined $24 million by SEC
EOS/USD, the technical picture
EOS/USD recovery is limited by the psychological $3.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $3.40-$3.50 This resistance area is created by a combination of SMA50 (Simple Moving Average) and the middle line of the Bollinger Band on a daily chart. A sustainable move above this handle will negate a bearish scenario and allow for an extended recovery towards $4.00-$4.20. A SMA100 daily located in this area will serve as a real stress-test for EOS bulls. Back in September, this barrier stopped the recovery and triggered a new wave of sell-off.
On the downside, if $2.70 is broken, the sell-off may continue towards September 24 low at $2.40 and towards the lower line of a daily Bollinger Band at $2.30.
EOS/USD, one-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.