EOS price analysis: EOS/USD butchers key support areas, $7.0 is within reach

EOS price is one of the biggest losers among the top ten largest cryptocurrencies by market capitalization. The trend is strongly bearish and it has plunged more than 3% on the day. There was an uptrend initiated after the price tested the $6.5 support.

While the price easily broke above the resistance at $8.5, it ran out of momentum to clear the resistance at $9.0 opening the Pandora box that has had it butcher its way through various support zones at $8.5, the 61.8% Fib level with the last drop from the high of $9.45 and allows of $6.55 close to 8.25 and finally the key support at $8.00.

The rising wedge pattern had been providing support in the past one week as seen on the chart below. However, the rising selling pressure above $8.00 broke the support culminating in the current breakdown that is threatening to slide below the short-term support at the 23.6% Fibonacci level between the highs of $9.45 and lows of $6.55 marginally above $7.20.

The MACD momentum indicator is moving further into the negative levels while the 50 simple moving average on the 1-hour chart has crossed above the 100-day simple moving average signaling that the sellers have the control. EOS/USD needs to keep the support at the 23.6% Fibo to stay away from further declines that are likely to come into contact with $7.00. Moreover, the previous low at $6.55 is still within sight.