Is EOS the Next Altcoin Due for a Run? - Price Analysis

  • Short term: possible bounce long to be had
  • Long term: good chance of a bottom being found on very long term scale

Many mid-cap altcoins have been burning up the charts recently (LINK, BAT for example), even as the big boys have been throttled by Bitcoin’s new downtrend. As perhaps the smallest large-cap altcoin, EOS has been riding the bottom of its BTC-paired chart for several months getting no love. But a bottom may have been found, and we go to the charts to review the evidence.

Starting on the 3-day EOS/BTC pairing, we first notice a lengthy development of bull divergences on the RSI. On such a large chart, this suggests that a bottom has been found -- and the only thing we lack here is a higher low on the swing lows. The EMAs have started to flatten, with the 8 EMA going sideways all through September until the present.

Where is the next low?EOS chart by TradingView

The histogram has spent a lot of time on the positive side, and is currently trending down. But as long as the RSI trendline holds, we can still make the case for a bottom having been found -- which is to say we might not even get a higher low on the next swing down.

Moving to the daily USD pairing, we see that EOS has likely not found a bottom to its short term market cycle. The histogram looks ready to roll over to the negative side, suggesting more downside; and thus, we can’t say for sure if the RSI will put in a divergence. We can also observe that volume (Coinbase) has not been impressive in general, with the only spike being during the big Bitcoin dump from $10k. There is not enough here to tell what is happening.

Again, looking for the lowEOS chart by TradingView

Finally, going to the 4-hour USDT pairing for the short term view, we see that EOS is currently finishing up its second significant dump of the week -- moving in step with Bitcoin -- into support from last month.

Price rolling up hereEOS chart by TradingView

On this timeframe, sell pressure seems to be fading, with a generally lower sell volume picture as the weekend looms. The histogram is arching back up, and if it does roll back up in the coming days we might see a long opportunity. The RSI looks like it’s putting in a bull divergence, although we must first confirm that the dip is complete.

Overall, EOS needs a lot of work. This is a good place to accumulate for value investors, but traders may need more medium-term strength to consider buying. On the extremely long timeframes, however, we might consider a bottom likely in, and the potential for a double bottom is clear. We'll have to see.

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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