As one of the altcoin majors, EOS is keeping up with the rest of the burgeoning altcoin space with some healthy gains. Against Bitcoin, it has taken a significant resistance level, and is gearing up to break through another one on its dollar pairing — perhaps set it up nicely for the rest of the year.
Starting on the weekly EOS/Bitcoin chart, we first notice that the 2018 low mark (at ₿0.00004721) has been retaken, after first losing the level in July 2019. This entire bottom area of previous resistance, derived from deep wicking in 2018, is steadily being flipped to support. The 55 EMA is clearly being respected here, and may be a significant level in the local market.
We see seven straight weeks of gains on this chart, although in percentage terms it has not been inordinate given the state of the market (about 50%). It seems wise for us to anticipate a week or two of red; however, given the market, it is not out of the question that EOS could simply rocket through the rest of this support.
On the daily EOS/Bitcoin chart, we see that the previous local top around ₿0.000045 would serve as a useful retest point of both the local market, and the approximate level of the important 2018 price level discussed above.
We see volume building up nicely here, and no bear divergence detected on the RSI. The histogram also looks strong, spending most of its time on the positive side, although we may see a bit of bearish contract in the coming days – this would also be in keeping with the rest of the market’s direction.
Finally, on the EOS/Dollar weekly, we see EOS pressuring another significant resistance/inflection level at $5.50, on top of a clear MTF uptrend. The RSI is getting closed to overbought on this timeframe, and we could see the MTF trend change to down after a rejection at this level.
Overall, EOS looks like it will be among 2020’s strong performers. It is at important historical levels on both its HTF charts; and even if it is rejected from these levels in the medium term, we are likely to see some consolidation and base-building for the rest of the year.
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