The EOS price has decreased by 25% over the past week. On November 24, it revisited the $2.5 support area for the third time in the past three months. The first two times it did so an upward move ensued afterward.
The current pattern for EOS suggests that the price is ready to move upwards towards the resistance line. However, a breakout from this pattern and the beginning of a new market cycle has yet to be confirmed.
$EOS BUY CALL 📊
All indicators are showing a buy signal for $EOS, and I'm predicting this cryptocurrency will begin rising.
— Welson 📊 (@CryptoWelson) November 26, 2019
The tweet predicts that the next time this trade is revisited, the price will be much higher than the $2.5 it is right now.
How high will the EOS price go? Continue reading below if you are interested in finding out.
EOS Descending Channel
The EOS price has been decreasing since reaching a high on May 31. The rate of decrease slowed down in the middle of July and the price has been trading inside a descending channel since.
The $2.4 area holds significant importance. The price reached it on September 24, creating a long lower wick and moving upward. Afterward, the price fell to the area again on November 23 and began the current upward move
Besides being a previous support area, it also is the 0.88 fib level, the final significant level before a full retracement.
Furthermore, both the RSI and the MACD support a move towards the resistance line. Both of them have generated bullish divergence.
However, as is visible by the presence of wicks, the $2.4-$2.5 area acted a support three times, immediately pushing the price upward.
On November 24, the price reached a close below this area. Whenever a significant support area is broken but the price cannot hold these lower levels, it indicates that a reversal might occur. Since the price is in the process of making a bullish close inside this area, this might be the case.
A close below the opening of the previous bearish engulfing candlestick at $2.65 would be required to confirm this reversal.
To conclude, while the EOS price looks bullish and ready to move towards the resistance line, we do not believe this upward move has been confirmed yet. Additionally, it is too early to call for a breakout above this pattern.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Shutterstock, TradingView, Twitter.
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Source: Be In Crypto