EOS has regained some traction among the top 10 coins today, and is holding on to its positive gains over BTC since this morning, as the market experiences a brief correction.
Right now it is looking promising that EOS may have finally found the bottom of its gruelling three-month decline after recently consolidating along a strong support at the 0.236 Fibonacci level.
Could this area provide EOS supporters with the footing to launch a reversal and take back lost ground? Or will the asset continue to tumble as Bitcoin steals focus in the market? Let’s take a look at the charts.
Diving into the 4hr chart we can see that EOS has been tracking well inside a falling wedge pattern since the start of May, consolidating between a strong upper resistance and lower support region.
The project struggled to inspire bullish confidence after delaying its mainnet launch for over a week, leaving investors disheartened and disappointed with the team’s competency in handling such a keystone network upgrade. This had a visible effect on the token’s value too. EOS fell by 47% over June as many questioned what was being done with the $4 billion raised during EOS’s year-long ICO.
Looking at a number of indicators now, however, we could be about to see this asset springboard off the new support area and start making its way back towards $10.
- Looking at the parabolic SAR indicator we can see a flippening from bearish markers to bullish markers appearing underneath the price action. This is a good signal for the start of an uptrend.
- Volume has been increasing over the last week with significantly higher highs.
- MACD is showing increased momentum towards the signal line, with the faster moving average converging over the slower moving average.
- RSI has recently recovered from a brief oversold moment and is now climbing back into the middle of the index channel.
- On the Ichimoku indicator we still have a bearish T/K crossing but the price action is quickly approaching the red Kumo cloud and is looking like it will pass through this shortly. This will be another strong confirmation of a trend reversal.
This is very similar to the trend reversal that we saw in an earlier VEN/BTC chart analysis where the asset was able to collect along a strong Fibonacci support and relaunch back into a new bullish phase. If EOS follows in this way we should expect it to mirror the bearish decline with a strong bullish uptrend.
EOS (EOS) Price Targets
All price targets are set from the bottom at the 0.236 fib level/ 0.001BTC.
Price Target 1: I think we should expect a strong bullish uptrend towards the 0.5 fib level (38.27%) once investors gather behind the reversal, particularly now that Chinese support is increasing according to the new CCID rankings.
Price Target 2: From here the price action will no doubt correct to the lower 0.382 fib support as short-term traders take profits (21.17%)
Once it collects along this level we may see bulls run for a second time if support can continue to fend off bearish opposition. This will be difficult, particularly given that many investors who have been holding EOS through the decline will be looking to exit and perhaps redistribute funds into Bitcoin or another short-term gaining coin.
If the 0.382 fib support breaks, then we could see EOS fall back to this 0.236 level until a new development or promising update arrives.
This article appeared first on Cryptovest
