- EOS retested the support zone from late September as resistance.
- Bulls may force another move to $1, but can the token break past this level?
EOS has maintained downtrends since mid-September after losing the support of $1.38. While publishing this blog, the alt seemed to have defended the psychological area at $1, though the overall stance remained bearish.
The coming week or two might see EOS breaking beyond the resistance that has restricted its upsides. Also, Bitcoin encountered massive resistance near $19.6K and $20.4K. A BTC move beneath $19K amidst heightened selling pressure would see EOS resorting to downsides on its price charts.
EOS Price Bounce for Two Weeks Might End Soon
The 12hr chart shows a price rebound from $0.94 within the previous two weeks, saw EOS printing multiple higher highs and higher lows in that timeframe. Thus, the lower chart momentum and market structure were bullish. Also, the Relative Strength Index (RSI) climbed beyond the 50-neutral, supporting this development.
Nevertheless, the A/D line didn’t break beyond October’s resistance. Assessing higher timeframe charts, like the one-day, confirmed these highs as less significant. The prevailing trend remained bearish, and the alt should overcome the lower peak at $1.12 to welcome bullish tendencies.
Furthermore, the previous three weeks saw EOS prices testing $1.1 repeatedly. This zone could represent a liquidity pocket. Late September sessions welcomed an 11.8% surge after EOS hit the level, pushing swiftly toward the $1.23 value area.
Meanwhile, bulls had no steam left after the uptick, and EOS dipped toward $0.95 in the following few days. Analysts plotted FIB retracement zones based on the token’s dip to $94 from $1.23. the 0.618 and 0.786 retracements represented crucial resistance belts at $1.12 and $1.18.
Bears might utilize the FIB levels and liquidity pocket confluence to execute short positions amidst a revisit to $1.1 some days later. Also, they can consider risk traders and short near $1.1 while setting invalidation beyond $1.13.
Development Activity Unconscious in August, October
Mid-August & October sessions saw development activity remaining flat. And that wasn’t attractive for long-term market players. Remember, investors want sustained project developments. Meanwhile, the social dominance index stood near 0.04%.
Indeed, EOS isn’t a renowned project, regardless of its $1B market capitalization. The token seemed primed for price dips in the upcoming few days. Meanwhile, a surge past $1.15 and a $1.1 revisit would cancel the bearish tale.