EOS is hovering near the major demand zone and received rejection from $0.83 level. The gains EOS made in 2023 have been almost lost. The Year-to-date return has come down to 3.25%.
Recently, the EOS price did a breakout from the $0.985 level in downward direction, and if the price is able to break below the lower wick of previous candle, there is a higher probability for the price to retest the major support again.
An uptrend in price began at the start of 2023 with a rise of approximately 55% from $0.856. The uptrend helped in forming a high at $1.34 level. The high triggered correction in the price due to the increased participation of sellers.
EOS price declined approximately 27% and formed support at the $0.985 level. The crypto currency price did try to retest the annual highs but was halted by the presence of bears at $1.26 level.
EOS and Ethereum Correlation
In the past 30 days, the correlation between EOS and Ethereum has reached 0.85, indicating that as Eth price received rejection from the $2000 level, the bearish momentum got triggered in EOS price. If Eth price breaks below $1800 level, there is a higher probability that price might break below the yearly low and major support to head toward $0.70.
While on the other hand, if Eth price rises from $1800 support, the price will also mirror the move and head toward the yearly highs. Will EOS Price Shatter The Major Support?
Eos price trades below all the major EMAs indicating bearish momentum in the price.
RSI trades at 33.14 and rising from the oversold zone indicating a chance of trend reversal. Price needs to stay above $0.84 for gaining bullish momentum.
Chaikin money flow score is 0.07, suggesting that the coin price is slowly gaining bullish strength for staying above the demand zone. EOS price arrived at the lower band of Bollinger and began to rise toward the 20-day SMA of Bollinger but the move was halted by the bears at the $0.91 level and the current price shows that price might again retest the demand zone before moving upwards. The longs/shorts ratio is 1.03 with 50.77% longs and 49.23% shorts, indicating almost the same pressure from both buying and selling sides in the last 24 hours. However, the buying position has increased from 47.69% to 50.77% since yesterday.
Conclusion:
The Eos price technical analysis paints a bearish picture but the indicators show that Bulls are stepping in to help price in staying above the demand zone. The market structure and price action for EOS coin is currently bearish since the breakout.
Technical levels:
Major support: $0.84 and $0.70
Major resistance: $0.985 and $1.26
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.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/19/eos-coin-price-prediction-eos-price-arrives-at-the-demand-zone/