EOS has suffered steep losses amid the recent market drops and is currently trading at an important support level near the $5.5 mark. There was a strong recovery in price yesterday for Bitcoin but EOS failed to keep up. The brief price recovery yesterday is already being retraced today and it looks likely that price is set to drop below the support level of $5.5. A daily candle close below this level would be a very bearish sign with the next notable support level close to $4.5. The RSI is currently trading in oversold territory but with strong momentum to the downside, and this is unlikely to signal any reversal.
On the hourly, the 50EMA has been acting as resistance so in the event of any rise it is likely to stop as it reaches the 50EMA. The high of yesterday reached about $5.9 before proceeding to drop. Price has been forming lower lows and lower highs since then. It looks like the current rise is slowing and forming a lower high which is a strong bearish signal. It is questionable how long support can hold here with already multiple tests of $5.4.
- EOS underperforms during yesterday’s brief recovery
- Trading at key support at $5.5
- Momentum is strong to the downside and looks likely to break through resistance
- Next key support level at $4.5
- Hourly 50EMA acting as significant resistance.
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