Lorenzo Stroe
Independent Analyst
- EOS is currently trading at $2.63 after a notable move following PayPal’s announcement.
- The digital asset has presented a buy signal on the daily chart.
EOS, like the rest of the market, is heavily bullish and has gained around $120 million in market capitalization over the past 24 hours with $2 billion in trading volume. The digital asset seems ready for a greater bull breakout in the near future according to several indicators.
EOS eying up $3 in the short-term
It seems that EOS is shifting its momentum in favor of the bulls after a significant breakout in the past 24 hours. The price has managed to establish a higher low at $2.5 compared to $2.41 on the daily chart and only needs a higher high to confirm an uptrend.
EOS/USD daily chart
The TD sequential indicator has presented a buy signal on the daily chart and the MACD, which was close to a bearish cross, has remained bullish and it’s gaining strength. The next hurdle for the bulls is the 50-SMA located at $2.65. A breakout above this point can easily drive EOS towards $3. It also seems that Bollinger Bands are squeezed significantly, which indicates a major price move is underway.
Perhaps, the interest of Block.one to invest in DeFi is helping EOS. The platform behind EOSIO has stated that they are very interested in EOS DeFi. According to Brendan Blumer, CEO and co-founder of Block.one, DeFi projects will have to meet all compliance requirements first.
We are very interested in investing in #EOS DeFi that can meet the compliance requirements of B1, and are actively on the lookout. I am going to work on more communication around the types of projects we are looking for, and the constraints we need to abide by
— Brendan Blumer (@BrendanBlumer) October 21, 2020
Block.One has also recently launched a suite of new services for EOS to build more accessible blockchain-based solutions. EOSIO for Business will focus on helping clients to meet industry standards thanks to the knowledge of engineers and developers in the blockchain industry.
EOS/USD 12-hour chart
Nonetheless, on the 12-hour chart, EOS is still facing a strong resistance level at $2.66 in the form of the 100-SMA. On the way up, there is another resistance level at $2.85, the 200-SMA which will most likely coincide with an overextended RSI.
Rejection from any of the two SMAs mentioned above can easily drive the price of EOS down to the start at $2.55 and potentially to the low at $2.43. Furthermore, the MACD has been bearish for quite some time and only turned bullish briefly due to the last spike. It can easily turn negative again after a rejection.
Important price points for EOS
The entire cryptocurrency market is heavily bullish, especially after PayPal announced the support for digital currencies like BTC, ETH, LTC, and BCH to buy products from more than 26 million merchants around the world.
On the way up, it seems that a breakout above $2.65 can drive the price of EOS towards the high of $3 in the short-term. On the other side of the fence, a bearish breakout below the support level at $2.55 will push the digital asset down to $2.43.
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