Published 52 mins ago
EOS price analysis indicates a downside momentum for the day. The price is crawling in a very narrow trading range with a mild negative bias. We expect the price to make a swift recovery from the current levels. As the price corrected nearly from its swing highs, this might be a bargain buying opportunity for the new entrants.
- EOS price trades lower for the fifth straight session.
- A reversal is expected as the price took a breather near $1.50.
- Momentum oscillators warn of aggressive bids.
As of publication time, EOS/USD is exchanging hands at $1.52, down 1.94% for the day. The trading volume fell 37% to $4.89 in the last 24 hours according to CoinMarketCap data.
EOS price looks for trend reversal
EOS price analysis on the daily chart revealed a trend reversal might be in the offering.
The price has formed a Doji candlestick in today’s session, following a big sell-off in the last trading day. Now, if the next day’s candlestick is a green one, then it would be a confirmation of a ‘bullish hammer’ pattern.
A hammer is a reversal pattern, generally formed at the end of either uptrend or a downtrend.
The sellers seem to be exhausted as the price took a swift recovery after testing the low of $1.47, testing it twice on the hourly chart. A spike in the buying order in the last one hour makes bulls hopeful.
A big green candle points at the renewed buying pressure. The price attempts to breach the 20-day exponential moving average at $1.53.
An hourly closing above the mentioned level would see $1.60 followed by the high of the previous session at $1.79.
The moving average convergence divergence (MACD) trades below the mid-line but with a bullish crossover. If it moved above the zero line more gains could be predicted.
On the daily time frame, the EOS price is taking support at the 20-day ema. This also coincides with the 0.38% Fibonacci retracement level. The Fibonacci retracement extends from the lows of $0.88.A long position could be initiated if the price gave closing above $1.55 on the daily basis. Next, the bulls could aim for an August 17 high at $1.67.
The MACD holds above the central line with a neutral bias.
On the flip side, a spike in the sell order could violate the bullish theory. A break of the support area of $1.47 could extend the losses toward the 0.50% Fibonacci retracement at $1.40.
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In conclusion, the price looks mildly bullish, a trade above $1.55 should be confirmed for the buy side.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/eos-price-looks-for-a-reversal-near-this-critical-level/