During February, EOS price formed support at $1 to initiate its bullish rally which led to the formation of its annual high at the $1.341 level. Bears did not find the price justifiable above $1 and triggered a drop as soon as the price reached the annual high.
EOS price then established the support level at $0.99 to retest the annual high, but was unable to rise above the $1.30 level. Since then, EOS price has been in a downtrend, performing zone to zone breakout. Recently, the cryptocurrency’s price entered into a consolidation zone ranging between $0.83 and $0.92.
On June 10, the Securities and Exchange Commission(SEC) filed a lawsuit against the biggest cryptocurrency exchange which induced a bearish momentum across the crypto industry. EOS shattered the support level of $0.83 and melted down to form support at the $0.62 level. Currently, price is in a bullish trend, recovering from the losses of June. The one-week return of EOS price is 9.38%.
The issue with the current price action is that the previous candle had closed in a bearish trend after facing resistance from the 20-day EMA. Bulls need to push price above the upper wick of the previous candle to target the next resistance level of $0.83. For EOS price to retest the annual high, it needs to rise above $1. On the other hand, if bears can push the price below the lower wick of the previous candle, there might be a chance for a pullback toward the $0.65 level.
Will EOS Price Rise Above $1?
The cryptocurrency currently trades below the 20,50,100 and 200-day EMAs, indicating bearish momentum in the price. The price is also receiving rejection from the 20-day EMA. Chaikin money flow score is 0.01 rising from -0.10, suggesting a rise in the participation of bulls in the market. The relative strength index (RSI) is currently at 40.36 and sloping upward, indicating bullish momentum in the price.
RSI has not crossed above 50 since April which implies how strong the bearish momentum has been. The bollinger bands have expanded, indicating an increase in volatility. The long/short ratio is 1.03 with 50.92% longs and 49.08% shorts, indicating a slightly increased bullish pressure in the market.
Conclusion
The market structure and price action of EOS has turned bullish after bouncing off from the $0.62 level. The previous candle has faced resistance from the $0.728 level, and the current candle needs to break above the upper wick to head toward the support turned resistance level of $0.83 level.
The technical parameters show an increase in bullish participation as bitcoin and ethereum have shown notable gains. The crypto market is witnessing a rise after the SEC’s crackdown toward the crypto market.
Technical levels
Major support: $0.62 and $0.55
Major resistance: $0.83 and $0.92
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/23/eos-price-prediction-eos-price-bounces-off-0-62-level/