Disclaimer: The findings of the following article are the sole opinions of the writer and should not be taken as investment advice
EOS has been one of the year’s least-performing cryptocurrencies so far, with the crypto registering 7.82% in YTD returns while the likes of ADA saw YTD surges of 331% [When compared to BTC, ADA, EOS, BCH, LTC, XRP]. While this might seem really disappointing to EOS investors, the year hasn’t ended yet and EOS might just blast through the roof soon.
At press time, EOS was trading at $3.065, having recorded a decline of 10.7% over the previous week. Although bearish, there seemed to be a huge opportunity to invest in EOS.
EOS 3-day chart
Source: EOSUSD on TradingView
As the attached chart suggests, EOS’s price seemed to be forming a bullish pattern over a 3-day timeframe. There was a chance for a trade of 13.47R, which would have huge rewards for little risk. In a previously written article, the entry position mentioned was $2.397; this would mean the trade had already yielded 30% in returns.
Now, let’s take a look at this position and see if it holds true.
The parallel channel was still holding good and the price had broken out of it once on 23 November. However, the price failed to hold above the pattern. By the looks of it, there will be another chance and this will happen again soon. The attached chart also highlighted the projected path EOS might take, with the same holding up as well.
So, going forward, we can set up another long position for those who might have missed out on this trade.
Rationale
Apart from the descending channel pattern, the RSI indicator seemed to be bouncing from the 50-level, which was supporting the long position. The OBV indicated good volumes for the coin. Both indicators showed no signs of bearish divergences.
This long position would last from a few days to a few weeks, perhaps even months. So, it is better to keep the leverage to a minimum and be patient.
Levels to look out for
Entry: $3.0290
Stop-Loss: $2.6796
Take-Profit: $7.8400
Risk-to-Reward:13.77
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