EOS price analysis: EOS/USD jumps above $3.8 amid strong bullish momentum

EOS/USD has recovered strongly during European hours.
The coin has retreated from a strong resistance created by $4.00.

Tanya Abrosimova Independent Analyst

EOS gained over 7% of its value in a matter of hours amid strong bullish momentum on the cryptocurrency market and became one of the best-performing altcoins out of top-20. At the time of writing, EOS/USD is changing hands at $3.88, off the intraday high reached at $3.96.

EOS/USD, the technical picture

Notably, a sustainable move above $3.80 helped to improve the short-term technical picture. The next strong barrier awaits us on approach to psychological $4.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $4.57 (the highest level since the beginning of August) and $5.00 with a confluence of SMA100 (Simple Moving Average) and SMA200 daily located on approach.

On the downside, the initial support comes on approach to $3.60. It is created by SMA200 4-hour. This barrier may stop the sell-off and create a pre-condition for the recovery. However, if it is broken, the downside momentum may be extended towards $3.40 strengthened by SMA50 and SMA100 4-hour.

Note, that the Relative Strength Index (RSI) on intraday timeframes is starting to reverses from the overbought territory which means the coin is vulnerable to the downside correction.