EOS price analysis: EOS/USD bulls strengthen their grip

EOS is rising in value during the weekend European session. The upward correction is welcome following the recent dip to $3.30. The last couple of days have seen the buyers fight tooth and nail to come out of the bear range.

The initial jump above the 50 Simple Moving Average (SMA) 1-h resistance gave the price a kick in an engulfing candlestick. EOS/USD stepped above $4.00 but corrected under the moving averages before finding support at $3.8. At the time of writing, EOS has recovered past the 50 SMA resistance and is exchanging hands a $4.20.

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The hourly chart shows EOS having the potential for further growth towards $5.0. The Moving Average Convergence Divergence (MACD) is trending upwards. The increasing divergence north is a signal for more buying positions. The 50 SMA having jumped above the longer-term 100 SMA is a key indicator for greater bullish influence and that EOS is likely to consolidate above $4.0.

However, the traders must be on the look for the Relative Strength Index which is currently ranging at 70. This could mean that the bulls are getting exhausted and in the near-term a correction back to the support at $4.0 and $3.8 is likely.

EOS/USD 1-h chart