EOS explodes, aiming for an outbreak in November
The EOS price rose significantly in November and hit a resistance area that has existed since March.
While a short-term retracement is possible, EOS will eventually break this area of resistance.
EOS is approaching the resistance
EOS price has risen rapidly since hitting a low of $ 2.22 on November 3rd. The rally began on November 21st and the price hit a high of $ 3.77. However, the price is going to make a long top wick and possibly a shooting star candle.
The main resistance area is at $ 3.90, which is above the level EOS has not traded since March.
Daily timeframe technical indicators are still bullish but overbought.
The six hour chart shows how the rally has become parabolic. While price can follow the rising support line, it has not been validated enough times. The support line is currently at $ 2.80.
The RSI has formed a bearish divergence within the overbought zone, indicating a possible decline.
The two-hour chart supports this possibility and shows a clearer bearish divergence in both the RSI and the MACD.
However, it also offers ascending support line (dashed line) that is currently near $ 3.20.
Therefore, the price could sink towards this level before recovering towards the $ 3.90 resistance area.
Loss of the short term support line could cause the price to fall to $ 2.8.
Trader CryptoTony outlined an EOS chart indicating that price is completing a complex WXY correction and will rise to $ 5.50.
As of March, the most likely outlook is the WXY correction structure (shown in blue below), which is generated by two ABC correction structures (orange) connected by the X-wave.
If Wave W and Wave Y are the same length, price will hit a high of $ 5.24.
A closer look at wave A shows that price is approaching the high end of the move, which is also in line with the results of the technical indicators.
After the fifth wave (black) is complete, the price will decline significantly before another breakout attempt is made.
While the highly dependent retracement may not be reached, the $ 2.87 to $ 3.07 area should serve as support for the price.
EOS price will soon peak near $ 3.90 before pulling back. After that, the next upward move may push the price towards the $ 5 level.
You can see the EOS price here.
Disclaimer of liability: This article is for informational purposes only, not investment advice. We are not responsible for your investment decisions.
According to Beincrypto