EOS Looks Poised for a Move Toward Record Highs

2년 전

EOS seems to be preparing for a move back toward all-time highs, price chart analysis indicates.

The cryptocurrency's pullback from the April 29 record high of $23.03 on the Bitfinex exchange ran out of steam near $15.71 - the 38.2 percent Fibonacci retracement of the rally from the March 18 low of $3.87 to April 29 high.

Stepping back a bit, the 38.2 percent Fibonacci retracement is one of the three golden ratios of technical analysis, with the others being 50 and 61.8 percent. They are often considered strong support/resistance levels. If prices break below the 38.2 percent Fibonacci retracement level, then the next support is the 50 percent, followed by 61.8 percent.

However, if the 38.2 percent support level holds, as is the case with EOS currently, then it is considered a sign a pullback has run its course.

EOS daily chart

As seen in the chart above, EOS bounced-off from near 38.2 percent Fibonacci retracement support on May 1 and seems to have built a base around $16.30 in the eight days since.

Notably, daily trading volumes have dropped sharply in the last two weeks, indicating the pullback is likely nothing more than a bout of profit-taking.

Further, the long-run momentum studies are biased bullish (sloping upwards). For instance, the 20-day and 50-day moving averages (MAs) are trending up and EOS is sitting well above those levels.

EOS/USD longs peak on Bitfinex

Interestingly, EOS/USD long trades on Bitfinex have risen to record highs, despite the pullback and recent sideways action in prices, indicating that dips are being viewed as buying opportunity.

Hence, EOS looks likely to scale the $20 mark soon and could have another go at the record high of $23.03 ahead of the mainnet launch, scheduled for June 2 - an event keenly anticipated by the community and investors.

As of writing, EOS is trading at $17.81 on Bitfinex - down 0.78 percent from the previous day's close of $17.95. The cryptocurrency notably rallied 193 percent in April and was the best performing top 25 cryptocurrency by market capitalization.


EOS could re-test $20.00 in a few days and may find acceptance above that psychological hurdle. In such a case, a rally to fresh record highs above $23.029 cannot be ruled out.
On the downside, a daily close below $15.71 (38.2 percent Fibonacci retracement level) would signal the rally from the March 18 low of $3.87 has ended and could yield a deeper pullback to $11.19 (61.8 percent Fibonacci retracement).
Additionally, prices could suffer an exaggerated drop on even slightly bad news, courtesy of extreme positioning as represented by record EOS/USD long trades on Bitfinex.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  trending

Plagiarism is the copying & pasting of others work without giving credit to the original author or artist. Plagiarized posts are considered spam.

Spam is discouraged by the community, and may result in action from the cheetah bot.

More information and tips on sharing content.

If you believe this comment is in error, please contact us in #disputes on Discord

Congratulations @techguru! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of upvotes

Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word STOP

Do you like SteemitBoard's project? Then Vote for its witness and get one more award!

Congratulations @techguru! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 3 years!

You can view your badges on your Steem Board and compare to others on the Steem Ranking

Vote for @Steemitboard as a witness to get one more award and increased upvotes!