EOS price corrected lower after it tested the $3.80 resistance area against the US Dollar. EOS is currently consolidating and it seems to be preparing for the next break versus USD, BTC and ETH.
Key Talking Points
- EOS price started a downside correction after trading as high as $3.82 (Data feed of Kraken) against the US Dollar.
- There is a crucial contracting triangle formed with support at $3.52 on the 4-hours chart.
- The price is likely to make the next move either above $3.65 or below the $3.52 support area.
EOS Price Analysis
In the past few sessions, there were bearish moves in bitcoin, ripple, litecoin and Ethereum, but EOS remained stable against the US Dollar. Earlier, EOS price tested the key $3.80 resistance level, formed a high at $3.82 and later started a downside correction.
The chart above indicates that EOS price declined below the $3.70 and $3.65 support levels to enter a short term bearish zone. The decline got traction and the price spiked below the $3.50 support level and the 100 simple moving average (4-hours).
A swing low was formed at $3.42 and recently the price rebounded above $3.50. There was a break above the 50% Fib retracement level of the last drop from the $3.821 high to $3.425 low.
However, the upward move was capped by the $3.65 resistance area. Besides, the 61.8% Fib retracement level of the last drop from the $3.821 high to $3.425 low acted as a strong resistance. At the outset, there is a crucial contracting triangle formed with support at $3.52 on the 4-hours chart.
Therefore, the price seems to be approaching the next key break either above $3.65 or below the $3.52 support area. If there is an upside break above $3.65, the price could revisit the $3.80 resistance.
On the other hand, if EOS price breaks the $3.52 support, there may be a sharp drop towards the $3.45 and $3.42 support levels in the near term. The next key support is at $3.28, where buyers might emerge.
The market data is provided by TradingView.