Hello everyone, today I would talk about EOS the operative system for enterprises was on the spotlight for had raise a record of 4 Billions on the ICO (Initial Coin Offering), since then it was one of the top player on the “blockchain game”, even the big player wasn’t immune to the huge sell-off during Feb-May and in the short period of a month the valuation fell from 5,50 Dollar to 1,35 Dollar (a whopping -75%).
In the chart we can notice that the down trend was very steep and ended at the bottom price with a high volatility, this movement make EOS jump up till a gain of a 100% from the 1,35 Dollar.
Lets see what happen in the last two and half month, this pretty long period we lived a sideway trend, EOS tried to break the 3 Dollar level just once (or two times in a close spat of time) but it was rejected, the cryptocurrency was at risk of a new downtrend once but the support at 2.26 Dollar was able to save the pattern and make the trading range sill solid.
As right now we are more close to the downside of the trading range let’s see the support we my find on the south, at 2,40 I find the first real support that EOS can use for slow down the bears dominance, a second level is set at 2,34 Dollar and is the last level before the crucial price of 2,26 Dollar that we just see was the last barrier to the bears lead.
If EOS will be able to revisit the upper band of the range we may take a look at some resistance we could find, 2,68/ 2,71 Dollar is an important resistance that bulls may be able to pass if they want to get out to the trading range to the right direction.
The second resistance level is set at 2,79 Dollar, in this area we have also another resistance at 2,82 Dollar and those prices will be very important for a new patter as if we break those resistance we could seriously revisit the 3 Dollar area.
The psychological price of 3 Dollar is our target as a continuation in this direction will probably make us draw an uptrend that will finally make the chart look more positive.
Short Term View
In the last month chart we can see that EOS valuation is very nervous and jump up and down in a very sudden way, we can notice that if we reach the 2,75 Dollar the view will be much better with the bulls in lead the valuation can easily run faster, for this reason I think that there are good chance that we will revisit the 3 Dollar area in the coming months.
As always with trading nothing is sure and external factor can influence the trend than we need to take a look at the general sentiment of the crypto market, any good news would help EOS to push up the price.
Thanks for reading and hope you enjoy this analysis, remember always to do your own evaluations before investing.