Will This Bullish Pattern Propel The EOS Price To $2.80?

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Published 22 mins ago

The EOS/USDT pair failed to give a bullish breakout of a rounding bottom pattern due to the increased selling pressure at the $1.89 supply zone. However, the price action displays the underlying bullish sentiment is preparing a trend reversal with a cup and handle pattern. So, should you consider buying for the long-term or wait for the current correction phase to cool off?

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Key points: from EOS analysis: 

  • The EOS price action shows the formation of the cup and handle pattern
  • The 50-and-100-day EMA nearing a bullish crossover encourages growth in underlying bullish momentum
  • The intraday trading volume in the EOS is $1.5 Billion, indicating a 48% gain

EOS/USDT Chart

Source- Tradingview

The bullish reversal pattern discussed in our previous article failed to break the resistance neckline at the $1.9 mark. Currently, the bearish turnaround from the overhead resistance accounts for a price drop of 13% in the last four days. 

The correction phase approaches the $1.58 support level after breaking below the 200 days EMA. However, the prices sustain above the 100-day EMA, which increases the possibility of a bullish crossover with the 50-day EMA. 

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Coming back to the price action, the possibility of a cup and handle pattern arises in the daily chart after the prices are reversed from the $1.89 supply zone. However, the bullish reversal to complete the price pattern may drop below the $1.5 mark before taking a bullish reversal from the $1.41 support level. 

Hence an opportunity to short-sell at the current market price arises for the sideline traders. 

In the long term, If the EOS prices manage to exceed the supply zone at $1.89 to give the cup and handle pattern breakout, a prolonged uptrend to the $2.80 mark is possible. 

Technical indicator

DMI indicator: the DI lines project a bullish trend in the US prices despite the recent downfall. Meanwhile, the ADX line maintains a positive trend reflecting an increasing trend momentum. 

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RSI– despite the suddenly increased volatility in market price, The RSI slope maintains a diagonal uptrend in the nearly overbought zone. 

  • Resistance levels- $1.56, and $1.73
  • Support levels- $1.41 and $1.26

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From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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