EOS price analysis: EOS/USD down 3.5%, as bulls discouraged by still resistance

  • The resistance created by $6.00 handle slowed down the bullish momentum.
  • The trend is positive as long as the price stays above DMA50.

EOS, the 5th largest coin with the market cap $5.34B and average daily trading volume $700M is changing hands at $5.73, losing over 3.5% on a daily basis. The coin has gained 7.6% in recent seven days; however, the upside momentum is capped by $6.00 handle. Bulls tried to engineer the breakthrough on Saturday, but the price touched $6.3 high and quickly returned to the previous channel/

EOS technical picture

Looking technically, EOS/USD is supported by $5.4 handle (DMA50), which comes before psychologically important $5.0 and $4.64 (the recent low reached on August 24). The price is moving above DMA50, which is a positive technical signal, but we need a strong momentum to get past $6.00. Once it is cleared, the recovery may be extended towards $6.83 (DMA100) with the primary bullish goal set at $8.66 (23.6% Fibo retracement for the downside movement from an all-time peak at $23.02.

This goal is still elusive, considering volatile market conditions and unstable sentiments, but it is not entirely out of reach as long as the cryptocurrency market continue to receive support from good news. SEC's decision to postpone the ruling on Bitcoin ETF and gather more comments and opinions is regarded as positive. The market is starting to see the glass as half full, which paves the way for a more extended crypto recovery towards the end of the year.

Read more about SEC's decision.

EOS/USD, daily chart


 


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