EOS Technical Analysis: Bears get ready to take over as EOS flashes sell signal

• The 200-period SMA has crossed over the 100-period SMA to chart a bearish cross in the 12-hour chart.
• The last time EOS flashed a sell signal in the 12-hour chart, the price dropped by more than 15%.

EOS made the headlines this Tuesday when they appointed Goldman Sachs veteran, Martin Chavez, to lead the advisory board. The price reacted very favorably to this news and jumped up from a low of $2.48 to an intraday high of $2.97. However, EOS was not done making headlines. Along with Chavez joining the advisory board, news hit that Google Cloud would be joining the EOS killer’s blockchain ecosystem as a block producer. 

EOS social dominance

Santiment’s social dominance chart shows that EOS mentions dominated 24% of crypto social media this Tuesday following the above-mentioned revelations. A huge spike in social volume usually creates a lot of hype and pushes the price up. However, what immediately follows is a period of bearish correction, and it looks like this is where we are at right now with EOS.

EOS 12-hour chart

EOS is currently priced at around $2.64 and has flashed a sell signal in its 12-hour chart (as per the TD sequential). The last time EOS flashed a green 9 in the 12-hour chart, EOS plummeted by 15.6%, going down from $3.855 to $3.253, over 9 sessions.

To compound the bearish sentiment, the 200-period SMA curve has crossed above the 100-period SMA to chart the bearish cross. If the sellers manage to break below the 50-period SMA ($2.60), they should be able to take EOS down to the $2.49 support level.

On the flip side, the bulls will hope for the 50-period SMA curve to stay strong and bounce EOS up to $2.84, to touch the 100- and 200-period SMA curves.