HomeLatest NewsEOS price corrects after previous 20% breakout

EOS price corrects after previous 20% breakout

The 14th largest cryptocurrency by market cap EOS rallied to highs of $2.97 but has dropped to lows of $2.57

EOS is trading just above a long term resistance line after bulls failed to hold gains achieved via a 20% breakout on Wednesday.

EOS price hit the previous local high of $3.95 in mid-August. However, the movement has been capped along a descending resistance line.

As of writing, EOS/USD is changing hands around $2.60, down from the highs of $2.97 reached on October 6. At the time, the 14th ranked coin surged from lows of $2.48, with bulls appearing to have the momentum to take them above $3.00.

But the break above a descending resistance line that has been in place for over five months did not hold for long either. Despite the 20% breakout, sellers pushed hard to have EOS/USD end the trading day with a daily candlestick that only featured an extended upper wick.

The past two trading sessions have seen EOS print a series of lower highs and lower lows to move closer to $2.50. This area is critical to bulls’ plans as it is the next major barrier to a downward trend towards the $2.45 zone that has resisted multiple bear attacks since April.

EOS/USD technical perspective

The technical outlook for EOS is suggesting a bullish scenario remains when charted on the daily time-frame. The daily chart features an upside looking Stochastic Oscillator with a bullish cross, whereas the MACD is also forming a bullish divergence just under the midline.

If buyers push above $2.70, its likely EOS price could rally to retest $2.90. Managing to turn this resistance zone into support is just what bulls may need to attempt to breach the $3.50 line.

EOS price daily chart. Source: TradingView

While EOS/USD is about 1.5% in the green on the day, it is showing some weakness on the hourly time frames. Price is below both the 10-day and 50-day simple moving averages on the 1-hour chart, while the RSI, as seen in the hourly and daily time frames, remains within the neutral zone.


Sign up to our exclusive newsletter today!

Tailored emails

No SPAM ever!

Alt coin news

Unsub anytime

After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.