The bullish case for EOS last week, when Bitcoin also had a possible move above $46,000, was that the price would rise above $3. However, in the past week, Bitcoin was rejected at $45,500 and EOS at $2.69, reinforcing the strength of the longer-term downtrend for EOS. The short term rally appeared to have stopped at $2.69 – where should I go for price?
EOS-12H
Source: EOS/USDT on TradingView
Marked on the chart, the market structure has been bearish since mid-November when the price slipped below the $4.15 support level. The $3 area, marked as a red box on the charts, was a confluence of several key levels. The $3 is psychologically important, as a round number resistance. In addition, a long-term horizontal level was important.
A string of Fibonacci levels (yellow) plotted for EOS dropped from $6.42 to $1.99 and showed the 23.6% retracement level was at $3.03, another resistance. In early December, the $3 area acted as demand, and the price bounced from there, but in mid-January this area encountered resistance.
After the $3 area was established as a long-term area of significance, the $2.69 rejection showed that the bulls weren’t even strong enough to push prices toward $3. And sellers made their strength feel much below the $3 level.
rode
Source: EOS/USDT on TradingView
The Awesome Oscillator was just below zero, although it climbed above it during the recent rally. In recent months, however, the AO has been below the zero line for most of the time. The MACD also showed similar evidence – the recent bullish momentum was once again in bearish territory.
The OBV has climbed (higher lows) over the past month – buying volume showed the presence of demand, although the market structure was bearish.
Conclusion
While the OBV showed some demand in the past month, it could easily be reversed in the coming days/weeks. Momentum briefly showed bullishness, but the price was rejected at the USD 2.69 level. Overall, the price action told a story of a strong downtrend, and EOS could be pushed towards $2 again.
Disclaimer: The findings of this analysis are the authors’ sole opinions and should not be considered investment advice.
This post Recent bullish momentum back in bearish territory? EOS has interesting signals
was published first on https://ambcrypto.com/recent-bullish-momentum-back-in-bearish-territory-eos-has-interesting-signals/
