EOS overview: daily RSI implies the downside correction

EOS/USD touched $4.40 before retreating towards $4.28 by the time of writing. The coin has been growing strongly in a recent couple of days amid in intriguing comments from EOS CTO Dan  Larimer. 

The coin surpassed Litecoin and became the fourth largest digital asset by market value with capitalization  $3.8B. It is worth noting, that an average daily trading volume slipped to $900M despite growing price.  

EOS technical picture

On the daily chart, EOS/USD stays above DMA200, which now serves as the first line of support at $3.83. The Relative Strength Index on a daily chart starts to revers from the overbought territory, signalling that the downside correction may be in store. However, the trend remains bullish as long as $4.00-$3.80 remains unbroken.  

Once the price moves below the said support area, the sell-off may gain traction with the next focus on $3.50 (DMA50) and psychological $3.00 strengthened by DMA100.

On the upside, we need to see a sustainable move above Wednesday’s high at $4.40 and February’s high at $4.54 to proceed to psychological $5.00. This handle separates EOS/USD from all the more important barrier at $6.39 created by weekly SMA50.

EOS/USD, 1D chart