Two consecutive marubozu candles are being priced in on the daily chart. A marubozu candle is where there is little or no wicks and a long body for the candle. This is indicating strong bearish momentum for EOS. The price of EOS recently held up well at the $7 support level but was not able to sustain amid steep drops across the cryptocurrency market. Prices across the cryptocurrency market have been dropping aggressively since the news of the SEC postponing the decision on a Bitcoin ETF.
The next support level for EOS is around $5.5, and with this drop being on significant volume, it looks like it will be reached and might even be broken.
We can see the drop in closer detail on the hourly chart. One bullish sign amid the huge drop is a bullish divergence between the RSI and price action. This occurs when the price action forms lower lows, but the RSI forms higher lows, showing that some selling pressure is coming out of the drop. Apart from this, all the signs point to further downward movement, the market as a whole is suffering steep losses. There has been a significant volume on the drops, and the percentage losses have been huge.
- Overall, technical analysis is looking very bearish for EOS
- Drops have been on large volume
- Price has dropped significantly from the $7 support level
- One bullish sign is the RSI forming a higher low while the price is forming a lower low
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