EOS is set for a rally despite breaking ascending channel trend

EOS, alongside other altcoins, has found itself in the middle of a selloff mainly driven by Bitcoin’s reversal from $8,400. Before the ongoing short term downtrend, EOS nurtured a significant uptrend within an ascending channel. The surge, however, lost steam short of $3.0, resulting in the losses that currently seek refuge at $2.70.

The blockchain platform has also been recording declining activity in the last few months. The number of users has also been affected. However, there has been a steady growth in the transaction volume. The growth in value is mainly supported by the decentralized applications (Dapps) activity.

EOS technical analysis

Despite the number of users declining significantly in the last few months, EOS short term bullishness is unlikely to be jeopardized. However, it raises questions in the asset's long term performance.

Meanwhile, EOS is teetering at $2.71 and is below the Simple Moving Averages in the 15’ range. The 50 SMA and the 100 SMA are blocking upward movement ahead of the key resistance at $2.75. The RSI has averted the return trip to the oversold, however, the MACD’s position in the negative region signals a growing bears’ presence.

On the brighter side, EOS is trading close to the resistance of a short-term falling wedge pattern. Correction above pattern resistance could eventually place EOS into a trajectory towards $3.0. For now, the best the bulls can do is to contain the losses above the $2.75 support in readiness for a recovery mission.

EOS/USD 15-minutes chart