EOS price analysis: EOS/USD battles to defend $5.0 support as cryptocurrencies react to falling stock prices

EOS declines are unstoppable following the formation of a subtle double top pattern. The reaction to the pattern was catalyzed the high volatility in the market that has led to the plunging of prices across the board. The worst hit by the declines are the major cryptocurrencies in the top 20 bracket. EOS id down 9.93% in the last 24 hours after breaking the bullish trendline support at $5.82. This opened the door for more losses as EOS fell like a stone in the air past several other support zones at $5.6 and $5.4.

At the moment, $5.3 has given in to the selling pressure that seems not to slow down. The next support is at $5.2 while the lifeline support at $5.0 is well within reach. All indicators are pointing towards continued declines at least in the short-term. But if the buyers can avoid declines below $5.2 then EOS can find balance and prepare for a pullback.

The markets are jittery both in the crypto space and the stocks. Globally, stocks have taken a plunge between 3% - 5%. At the same time the majority of stock indexes are recording losses ranging from 10% to 20%. Gold is reported to be performing relatively higher and is believed to be used to hedge against the falling stocks. However, cryptos seem to be losing their competitive edge with more mature assets like gold. The reaction of crypto prices to stock prices is hard to explain because both of these assets have different drivers for their price actions. However, the current reaction could be associated with the Fed’s actions in terms of interest rates.

At the same time, it is not clear if the funds that are coming out of the stocks will end up in gold and other bond related products or digital assets will get a boost as well.

EOS/USD 4-hour chart