EOS rose along with most of the crypto market two days ago, but it has since slowed meeting resistance near the $9 mark. This level has acted as a long-term area of importance for EOS after much trading activity has occurred here in the past.
It has always acted as a strong resistance point for EOS which could be due to sellers anticipating a steep drop in price as it approaches $10. Adding to the downward pressure is the 100 and 200EMA which are currently trading near the $9 mark also.
Today’s gain has been on low volume, and the price looks set to go down from here. MACD is approaching a centreline crossover to the upside, a bullish signal, but might not have much effect if it occurs given the strong resistance faced.
The 4hr chart shows that volume is after dropping off and the price is beginning to trade in more of a range. However, EOS is still a relatively new project and is subject to volatile price swings as buyers and sellers contest the underlying value of the project. In the event of a drop in price, the 50EMA and 100EMA may act as support on the 4hr chart, but these have been questionable support levels in the past.
The 1hr chart shows in further detail the range we are currently trading in between the resistance level and the hourly 50EMA. Some signs on the hourly are pointing to downward movement with the MACD just crossing its signal line to the downside, a bearish signal. The 50EMA has been acting as support but if some selling volume comes in it is questionable how long it can hold for.
- The $9 level is acting as strong resistance. This could be due to sellers anticipating a steep drop in price as it approaches $10.
- The 50EMA is currently acting as support on the hourly, but it is questionable whether it can hold if significant selling volume comes in.
- In the event of a drop, the 50 & 100EMA may act as support on the 4hr, but these have been questionable support levels in the past.
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