EOS has been in a downtrend since mid-September, interspersed with periods of varying price action. Over the past few weeks, the price has made a strong jump from the lows of $1.99, reaching a resistance level of $2.69. While it was an impressive run of 36% in a little over two weeks, September’s downward trend has continued uninterrupted.
EOS-12H
Source: EOS/USDT on TradingView
The $3 area highlighted in red was one area where the price fell and bounced repeatedly in December. However, it was unable to climb past the $3.47 level for most of December. In early January, the price fell below this demand area and again tested from below, confirming it as a supply area.
In recent weeks, the price has been trending upward in lower time frames, but the 12-hour chart showed that this bounce was an opportunity to enter short positions near $3, rather than a true trend reversal from bearish to bullish.
The Fibonacci retracement levels (yellow) were plotted based on the shift of EOS from $6.42 to $1.99 and showed the $3 level as the 23.6% retracement level, adding significance to this level.
A move above USD would therefore be necessary to consider a shift in the market structure from bearish to bullish.
rode
Source: EOS/USDT on TradingView
The RSI has been below neutral 50 for most of November and December and only climbed above neutral 50 at the end of January. At the time of writing, it fell back to the value of 50.
In line with this, the Aroon indicator showed that most of the past three months were spent in a steady downtrend (where the Aroon was Down, blue, high). There have been periods of varying price action where neither trend could be identified on the indicator.
The Cumulative Delta Volume indicator has shown stable buying volume over the past three weeks.
Inference
The market structure remained bearish as momentum appeared to have lost momentum at the USD 2.69 resistance level. The coin has been in constant demand for the past three weeks, but $3 remained a significant level for the bulls to overcome.
This post Will EOS’s recent gains translate into a trend change going forward?
was published first on https://ambcrypto.com/will-recent-gains-of-eos-translate-into-a-change-in-trend-going-forward/
