Refreshes Monthly Highs Above $1.65; What’s Next?

The EOS price analysis turns explosive today as zoomed 15% on Wednesday. The coin opened flat but scaled up exponentially and refreshes the three-month highs. From the technical perspective, EOS’s price eyes an extended bull trend in the short term.

EOS has been building up a strong upside momentum lately and adding new participants with every discounted opportunity in the market. As of press time, EOS/USD is trading at $1.65, up 15% for the day.

According to CoinMarketCap data, the 24-hour trading volume shoots up more than 300% at %1,038,070,118. A sharp rise in price with exponential growth in volumes is a strong bullish sign.

• EOS price rose sharply above $1.60 extending two sessions’ gains.
• In the last few hours, the price retraced sharply but remain above $1.50.
• A daily candlestick below $1.45 would invalidate the bullish thesis.

EOS price turns north

On the daily chart, the EOS price analysis indicates the continuation of the upside momentum.

EOS price today gave a breakout of an inverted “ Head & Shoulder” pattern. The neckline level of the pattern pierced at $1.4158. The volumes remained above the average, indicating strength. According to this pattern, if the price closes above $1.4456, today on a closing basis, then we can expect a good move of up to $1.70.

Whereas, there is an immediate hurdle of resistance at $1.57, which is 50% of the big bearish candle formed on May 11. If that level breaks above and closes above that level, then we can expect a good momentum of $2.

On the other hand, a spike in sell order could result in retesting of the session’s low.

The RSI (14) is trading above 65, implying a caution of the current move. The volumes were declining with every move on the higher side, and this breakout of a new pattern with more than average volumes coming up doesn’t add up any buying pressure. 

1-hour chart indicates some retracement before the next big move

EOS on the hourly chart gave an impulse move of 33% from $1.244 to $1.66 in the previous session and retraced in the last few hours. There is a probability that the price might take a pause between 50% to 61.8% level i.e. between $1.40 to $1.45. 

Also read: http://Why Retail Players In Crypto Continue to Be Hesitant Despite Strong Institutional Backing?

The nearest resistance is at $1.66, whereas the nearest support is at $1.40. There is a higher probability of the price closing above the resistance level. Buy on dip 0pportunity is the best trading strategy to play with this price-taking retracement.

On the other hand, a break below the $1.40 level could invalidate the bullish outlook on the hourly scale

EOS is slightly bullish on all time frames. Above  $1.66, we can put a trade on the buy side.