- EOS/USD has lost over 1% in a matter of minutes amid a widespread sell-off on the market.
- The price may slip to $2.54 before the recovery resumes.
EOS/USD attempted a recovery above 4-hour SMA200 (currently at $2.65) and touched the intraday high at $2.67. However, the upside momentum proved unsustainable as the price of the digital asset dropped to $2.62, losing over 1% of its value in a matter of minutes. Since the start of the day, EOS/USD has barely changed, though it is still 3.5% higher from this time on Thursday.
The retreat below 4-hour SMA200 has worsened the short-term technical picture and pushed the price inside the recent consolidation range. Considering the downward-looking RSI on the intraday chart, more sell-off may be expected towards the lower boundary of the channel. Let’s have a closer look at the technical picture to see what may be in store for EOS.
EOS/USD: technical picture
On a 1-hour chart, EOS/USD is still moving within an upside trend, while the recent retreat qualifies as a natural correction after a sharp increase from 2.55 on Thursday to $2.67 on Friday. If the sell-off gains traction, the price may retest 1-hour SMA50 at $2.58, closely followed by the short-term bullish trendline. This area has a potential to stop the correction and trigger a new recovery attempt. The next support comes at $2.54 (a combination of 1-hour SMA100 and SMA200).
EOS/USD 1-hour chart
On the upside, a move above 4-hour SMA200 is needed to improve the technical picture and bring the short-term recovery back on trac with the next major focus on $2.70, which is closely followed by daily SMA100 at $2.74. In the long-run EOS/USD has a good chance to test this area as the daily RSI points upwards. However, considering the short-term picture we may see a decline towards at least $2.54-$2.50 area before new buyers pop in.
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