A Declining Volume Indicates Consolidation; Time To Buy?

EOS price analysis indicates the continuation of a price correction. The spectacular rise in the price attracted the sellers and initiate a distribution near the supply zone.

As of press time, EOS/USD is exchanging hands at $1.70, down 5.14% for the day. The 24-hour trading volume declined more than 50% below $ 8 billion. A fall in price along with the volume is a weakening downside trend.

• EOS price edges lower for the second straight session.
• A decisive break below $1.70 would bring more losses to the coin.
• A red candlestick indicates the dominance of the sellers.

EOS price turns south

On the weekly chart, the EOS price gave a breakout of a “Falling Wedge” pattern. The falling wedge can be one of the most difficult chart patterns to accurately recognize and trade.

When lower highs and lower lows form, as in a falling wedge, security remains in a downtrend. The falling wedge is designed to spot a decrease in downside momentum and alert technicians to a potential trend reversal.

The price gave a breakout of the 200-day exponential moving average & trading above it. The asset is making lower lows and lower highs formation.

The recent price action implied a bearish impulse move from March 28 ($3.18) to June 13 ($0.80). Amid pullback the price test 50% Fibonacci retracement, which will act as a hurdle (resistance)  in the coming days. If the price is able to break above ($1.95), then we can expect a good bullish momentum of ($2.4).

On the daily chart, EOS has given a breakout of an inverted “Head & Shoulder” pattern, & after that gave an impulse move of more than 50% from $1.26 to $1.94.

Further, the price gave a breakout of the 200-day exponential moving, but couldn’t sustain above that level due to resistance on the weekly chart, as mentioned above. If the price close below ($1.600), then we can expect a good fall, otherwise, a possible reversal is expected in the coming days. 

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The nearest support is ($1.60), whereas the most immediate resistance is around ($1.80). There is a higher probability of the price breaking its resistance on higher levels.

But, due to the spike in sell orders if the price come closer to its support, then we can have a “Buy on dips” Opportunity.

On the other hand, a break below the $1.60 level could invalidate the bullish outlook. And the price could fall toward $1.50.

EOS is giving mixed signals on different time frames. Below  $1.60  closing on the hourly time frame, we can put a trade on the sell side.