EOS Price Key Highlights
- EOS price looks prime for a break of a short-term support zone, paving the way for further declines.
- Price is also trending lower inside a descending channel visible on the 4-hour and daily time frames.
- Horizontal support levels are also nearby, and buyers might be waiting to defend those areas once tested.
EOS is still in selloff mode as it bounced off the top of the descending channel and sets its sights on support.
Technical Indicators Signals
The 100 SMA is still above the longer-term 200 SMA to signal that the path of least resistance is to the upside. This suggests that there’s still a chance for bulls to return, possibly on a break of the channel top around 8.000.
However, the gap between the two moving averages is narrowing to signal weakening bullish momentum. At the same time, the 50 SMA is below both and is in line with the channel top to add to its strength as a ceiling. This could be enough to guide EOS down to the bottom of the channel close to 2.000.
There is potential support around the 4.300 to 5.000 region since this lines up with the mid-channel area of interest and the lows so far this year. A break below this could lead to a drop to the channel bottom near the all-time lows at 0.500.
RSI is on the move down so EOS could follow suit, but the oscillator is starting to dip into oversold territory to signal exhaustion among sellers. Stochastic is also indicating oversold conditions, so sellers could take a break and let buyers take over.
Cryptocurrencies are mostly in the red so far this week, though, as there have been no positive catalysts to revive the rallies. It doesn’t help that FUD appears to be in play, leading more and more sellers to join in as altcoins see more declines.
EOS photo via Shuttertock.