EOS Continues Ranging and Is Yet to Confirm a New Trend
The EOS price has been ranging since initially breaking out from a long-term resistance line in Aug. 2020. The direction of the trend remains unclear.
EOS/BTC has fallen to a new all-time low and is bearish until it reclaims the 860 satoshi area.
At the beginning of Aug. 2020, EOS broke out from a descending resistance line that had previously been in place since May 2019.
While it initially increased, it was rejected by the $3.90 resistance area, the 0.618 Fib retracement level of the most recent downward move. It has been decreasing since.
Currently, EOS is ranging between support and resistance at $2 and $3.90, respectively. Technical indicators are neutral, fitting perfectly with the ranging price movement.
Cryptocurrency trader @Mesawine1 outlined an EOS chart, stating that it’s getting ready for a breakout.
While it has broken out from the below line, it has failed to sustain the move and has been falling since.
The daily chart outlines the same range seen in the weekly one.
Furthermore, technical indicators are similarly neutral, failing to provide a direction for the ensuing movement.
The six-hour chart looks bearish.
The price has broken down from a descending resistance line and has failed to retrace significantly afterward.
Until it reclaims the $2.96 resistance area, which is the 0.382 Fib retracement level of the entire downward move, the trend remains bearish.
EOS/BTC has been consistently falling since reaching an all-time high price in March 2018. EOS reached a new all-time low on Dec. 2020 and has been declining since, reaching a new all-time low of 700 satoshis on Thursday.
Until it reclaims the 860 satoshi area, which is now likely to act as resistance, the trend is bearish.
To conclude, both the EOS/USD and EOS/BTC pairs look relatively bearish, the latter more so than the former. In the best-case scenario, EOS/USD could continue ranging between $2 and $3.90.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
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