EOS Price Analysis: EOS coin vulnerable to the bears as price action attempts to retrace towards its last month's lows

www.thecoinrepublic.com 11 June 2021 08:37, UTC
Reading time: ~3 m

  • EOS coin on the daily chart highlights the possibility of the death cross between 20 and 100 EMA
  • Presently, the EOS token is priced at $5.06 established on the back of a 3.75% decrease in the past 24 hours
  • In contrast, the EOS/BTC pair is trailing at 0.0001375 BTC with an intraday loss of 6.12% at press time

The daily technical chart of EOS coin forecasts the continuation of a bear cycle as evidenced by the bearish crossover between the 20 and 100 EMA. 

While the current price of EOS is sustaining above the major support area of $4.95, a breach of that level in the near term will expose EOS to the next support of $4.27. 

The success of the token to escape the 200 EMA as temporary opposition will reveal the upcoming two critical resistance zones of $6.07 and $6.54 respectively. However, that seems extremely unlikely in the near term given that the 200 EMA is repeatedly invalidating the efforts of the bulls to pull the price back up. 

Barring an overextended selloff, the EOS token should steer clear of the support of $4.27. That particular level, when broken as support, can validate the bearish h&s pattern. A breach of the neckline will expose EOS to re-explore January’s lows at $2.94 which is at a low of 40% from the current price level. 

On the upside, the Daily Stochastic RSI is on the verge of entertaining a bullish crossover. The success of the %K line to travel above the %D line would enable EOS to witness a break above the current price level by flipping the 200 EMA into support. 

The volume of (872 K) is considerably lower than the volume of (2.62 M) of the 20 periods moving average. The lack of buying pressure is a consequence of the price action of EOS being wrapped inside the bearish pattern. 

According to the coinmarketcap website, EOS enjoys the #26th rank and market dominance of 0.31%. 

EOS/USD on TradingView

EOS Price Chart on the 4-hour time frame 

As displayed in the above chart, the 20 EMA is behaving as a critical hindrance to the trend of EOS on the 4-hour chart. EOS coin kickstarter today’s session on a bearish bias as a consequence of bearish divergence displayed by the price action and the RSI oscillator. 

Presently, EOS price action is confined inside the descending parallel channel. 

A break above the bearish 0.0232 FIB retracement will grant EOS an exit ticket from the bearish continuation pattern and reveal gains worth 16% in the near term. 

However, the latest trend of EOS discloses the fact that the bears have ruptured the momentum. At the current price level, EOS is maintaining its bearish bias and attempting to re-test the support of $4.02 which was established during May’s bloodbath. 

The technical indicators have devised as a sell signal as evidenced by the bottoming RSI inside the equilibrium range. The MACD on the other hand is on the verge of entertaining a bearish crossover. The above statement can be reinforced by the decelerating histogram at press time.  

SUPPORT : $4.95, $4.27

RESISTANCE : $6.07, $6.54


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