Disclaimer: The following article attempts to analyze the emerging patterns in the EOS short-term market and its impact on the price.
The month of September saw cryptos mostly consolidating or recovering from the sudden sell-offs. Most major cryptos have been able to recover positively over the past week, EOS has also been seeing its price rise after a long, extended downtrend. Although the coin ranked 14th on the CoinMarketCap’s list of cryptos in terms of market cap, the digital asset has not managed to return a positive YTD to its investors.
At press time, EOS was being traded at $2.59 and has been taking the charge of an upward trending market.
Source: EOS/USD on TradingView
The above chart highlighted that the rising price over the past couple of days was enclosed within a rising ascending channel. This upwards movement was not visible in the EOS market for the better part of September. However, as the price began striding higher, the 50 moving average slipped under the candlesticks and even the signal line remained under. This was a sign of the price trend changing in the market.
At press time the convergence of Bollinger Bands indicated low volatility. Although a level of bullishness has emerged in the EOS market, the Relative Strength Index has been indicating that the rising price has also been driving the digital asset away from equilibrium and close to the overbought zone. However, as seen earlier, the RSI has formed double tops at 60 and reverted. This could be seen as a bearish sign, as it could be an indicator of a trend reversal.
Source: EOS/USD on TradingView
The Fib retracement has marked the resistances and support for EOS in the given period spanning from the beginning to the end of September. This makes it visibly clear that currently, the price has met with a strong resistance at $2.60, which it has been unable to breach for quite some time. A boost in price may help the asset in surpassing the level, however, its next immediate support was at $2.68. Due to constant devaluation, EOS’s journey upwards has been filled with resistances and the current price targets were marked at $2.60 and $2.68.
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