EOS is the top performer in the top ten cryptocurrencies over the past 24 hours.
The smart contract platform has risen from around $1.8 to over $2.6 over the past four days, an over 40% increase.
The surge brought EOS out of a range it had been trading in between $1.7 and $2.
EOS entered this range after a steep decline which had been taking place since mid-November when EOS traded around $5.5.
The currently surge looks likely to increase in the near-term. Today’s daily candle is forming a Marubozu candle.
A Marubozu candle is a candle with little or no wicks and shows strong movement in one direction.
The momentum is also strong with the buyers as both the daily MACD and RSI increase.
The hourly chart shows in closer detail the surge which brought EOS out of its trading range between $1.7 to $2.
After surging over the space of a few hours, EOS reentered a range from around $2.32 to $2.52.
It has since continued its surge and broke through this range also to the upside.
This is a bull flag pattern where price continues its surge after briefly entering a range after the initial surge.
Although momentum is on the side of buyers as both the hourly RSI and MACD increase, a bearish divergence is forming between the price and hourly RSI.
A bearish divergence is a typical reversal pattern and takes place when price continues to form higher highs despite buying pressure falling back and forming a lower high.
Whether this indicates a reversal remains to be seen, and there is a strong chance that it will not, given the strong buyer momentum.
- EOS is the top performer in the top ten cryptocurrencies.
- Buyer momentum is strong with a Marubozu candle forming on the daily and also the RSI and MACD increasing.
- Bearish divergence forming between hourly RSI and price which is a typical trend reversal signal.
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