EOS Retests Level Amid Uptrend Gains - Price Analysis

  • Short term: Recent uptrend being tested, no clear trend.
  • Long term: Recent general altcoin gains pulling back, also no trend.

EOS (EOS) has joined other leading altcoins over the past week or so with some significant gains, and - like them - is now retesting some levels in its new local market structure. If these levels are maintained, we could see further gains in the coming days and/or weeks.

We start with a medium term 8-hour EOS/BTC chart. Here we see that the 21 exponential moving average (EMA) has held the uptrend so far - price has not closed below it - and is again being tested. And here, the 21 EMA also happens to fall just above the inflection line for the local uptrending structure.

Retrace to key levelEOS chart by TradingView

The histogram here is, however, heavily diverging (bearish) from price, although the RSI is not (not pictured).

On a larger daily chart, we see that price is struggling to hold the recently taken 55 EMA - about where the 21 is on the 8-hour chart. Holding this would be a major milestone; and, likewise, closing below it would give us pause to consider a pullback.

Solid indicatorsEOS chart by TradingView

The indicators look stronger on this chart, with higher highs on both the RSI and histogram, and strongly uptrending MACD. If that happens, we would look for support at the 21.

Finally, on the USD daily for the sake of comparison, we see that EOS' dip has been steeper on this chart amid Bitcoin’s own dip last night (which has brought down prices in the market in general). The 55 EMA has here already been lost, and price has been defended at the 21. Sell volume looks likely to be significant today, with half a day left of trading and already almost equalling the previous day.

Range between 55 and 21 EMAEOS chart by TradingView

If EOS/BTC can hold on the daily 55 EMA, it will make EOS/USD more likely to hold the 21-day EMA. We also see that this is exactly where the 0.382 Fibonacci retracement level is; and if price can be held there, it will mark a shallow retrace and form a positive outlook for a continued uptrend.

Generally, if Bitcoin’s price can stabilize, it will be ideal for preserving the recent altcoin gains and their new uptrends. If things get too choppy with Bitcoin, however, we could see a premature end to what many think is a - finally come - new “alt season.”

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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