Altcoins

Recent bullish momentum back in bearish territory? EOS has interesting signals

The bullish case for EOS final week, when Bitcoin additionally had a doable transfer above $46,000, was for the value to climb above the $3 mark. Previously week, nevertheless, Bitcoin was rejected at $45,500 and EOS at $2.69, which bolstered the power of the longer-term downtrend for EOS. The short-term rally appeared to have halted at $2.69- the place to subsequent for the value?

EOS- 12H

EOS rejected at resistance, reinforcing the downtrend it has been on since November

Supply: EOS/USDT on TradingView

Highlighted on the chart, the market construction has been bearish since mid-November, when the value broke down beneath the $4.15 help degree. The $3 space, highlighted as a purple field on the charts, was a confluence of a number of necessary ranges. The $3 is psychologically necessary, as a spherical quantity resistance. Furthermore, it was a long-term horizontal degree of significance.

A set of Fibonacci ranges (yellow) plotted for EOS transfer down from $6.42 to $1.99 confirmed that the 23.6% retracement degree was at $3.03, one other resistance. In early December the $3 space acted as demand, and the value bounced from there, however in mid-January, this space was flipped to resistance.

Having established the $3 space as an space of significance in the long run, the rejection at $2.69 confirmed that the bulls weren’t even sturdy sufficient to drive costs to the $3. And, sellers made their power felt a lot beneath the $3 degree.

Rationale

EOS rejected at resistance, reinforcing the downtrend it has been on since November

Supply: EOS/USDT on TradingView

The Superior Oscillator was simply beneath the zero degree, though it did climb above it within the latest rally. Nevertheless, previously few months, the AO has been beneath the zero line for a majority of the time. The MACD additionally confirmed comparable evidence- the latest bullish momentum was as soon as extra again in bearish territory.

The OBV has been climbing upward (greater lows) previously month- the shopping for quantity confirmed the presence of demand though the market construction was bearish.

Conclusion

Though the OBV confirmed some demand previously month, this might simply be reversed within the days/weeks to return. The momentum briefly confirmed bullishness, however the worth was rejected on the $2.69 degree. Total, the value motion instructed a narrative of a powerful downtrend, and EOS could possibly be pushed decrease towards $2 as soon as once more.

Disclaimer: The findings of this evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.

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