EOS price corrected lower, but remained supported above $5.00 against the US Dollar. EOS is likely to bounce back and dips remain supported versus USD, BTC and ETH.
Key Talking Points
- EOS price corrected lower and tested the $5.05-5.10 support area (Data feed of Kraken) against the US Dollar.
- There is a major bullish trend line formed with support at $5.20 on the 4-hours chart.
- The price remains supported above the $5.10 level and the 100 simple moving average (4-hours).
EOS Price Analysis
This past week, EOS followed other cryptocurrencies (bitcoin, Ethereum and litecoin) and corrected lower against the US Dollar. EOS price formed a new yearly high near the $6.009 level and later started a strong downside correction.
The chart above indicates that EOS price corrected below the $5.65 and $5.45 support levels. There was also a break below the $5.40 level and a connecting bullish trend line on the same chart.
Sellers gained traction and pushed the price towards the $5.05-5.10 support area, where buyers emerged. A swing low was formed at $5.086 and recently the price moved above the $5.25 level and the 23.6% Fib retracement level of the last decline from the $6.009 high to $5.086 low.
However, the upward move was capped by the $5.60 level and the 50% Fib retracement level of the last decline from the $6.009 high to $5.086 low.
The price trimmed gains and declined towards the $5.20 level plus the 100 simple moving average (4-hours). There is also a major bullish trend line formed with support at $5.20 on the same chart, acting as a strong barrier for sellers.
On the upside, the price must clear the $5.50 and $5.60 resistance levels to start a fresh increase in the coming sessions. The next resistance is at $5.85 and $6.00.
On the downside, if there is a break below the $5.20 support and the 100 SMA, EOS price may retest the $5.05 support area. Any further losses might increase chances of a break below the $5.00 support area in the near term.
The market data is provided by TradingView.
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