EOS rate technical analysis, EOS price forecast. The most likely scenario for EOSUSD trading. Key levels and general market sentiment.
In this post, I applied the following tools: all-round market view, Japanese candlestick patterns, market balance level, oscillators, volume profile, key levels, trendline analysis and graphic analysis
In the cryptocurrency rates analysis, the EOS cryptocurrency was unjustly left behind. This asset has been ahead Litecoin by market cap and has become the fifth largest cryptocurrency. Well, let’s forget about Bitcoin rate for a while and make EOS price prediction.
This altcoin has been especially suffering in the recent times, and everything started with the switch to its own blockchain.
Remember, at that time, all holders of the EOS tokens, kept on both hot and cold wallets that didn’t support an automatic ERC20transfer, were ordered to register their assets.
Unfortunately, fraudsters are attentive, and so, fishing web sites appeared soon. But the best known case was the fishing that had spread from the hacked Zendesk email of Block.one, the designer of the EOS blockchain.
This attack resulted in more than 5000 missing tokens.
But the investors suffered the most from not even the theft itself, but from the project administration, represented by EOS Core Arbitrage Forum. It was trying to protect Block.one from the investors’ material claims, who wanted to get back their funds, and froze 27 suspected accounts without public investigation.
Cryptocurrency is always challenged by any hints at centralization, and there appeared CENTRAL regulator, able to block investors’ funds.
Daniel Larimer, the EOS CTO, has already announced that the Core Arbitration Forum, in the early days of its work, did more harm than good. They have already started discussing the idea to change the EOS network protocol to discontinue the internal regulator power.
It is rather a strong negative internal driver that fundamentally presses the EOS price down. On the other hand, it doesn’t make the project itself less significant; as the EOS platform is the first decentralized operation system, whose quality features leave Ethereum behind.
You shouldn’t forget, that the CAF can be strongly criticized, but when the dust settles and the project presents the first releases, everybody will forget this story with accounts blocking; the smart money will flow back to the market.
So, I in no way think the EOS tokens to be a scam that should be dumped at lows. It is a very promising altcoin, with a strong idea and a powerful team.
Now, during the common correction, it is important to identify the key levels and the entry point that would enable one to open the position with the most profit potential. Technical analysis will help us do it.
Traditionally, I’ll start EOS technical analysis with the 1M timeframe. It is clear in the EOS price chart above that the current month’s candlestick broke through the previous monthly low, and so, the way down towards 5.10 USD (April’s low) is open.
In the EOS 1W chart above, you can already see a hidden divergence (marked with the blue line) that suggest a soon end of the bearish trend, or, at least, its near bottom.
The key level of 5.10 USD in the weekly timeframe is supported by Keltner channel’s bottom border and the support level in the volume profile.
RSI stochastic also indicates oversold, but it doesn’t yet send a buy signal.
Finally, I can suggest that in the1W timeframe, there is a slightly descending sideways trend that may let the EOS ticker drop to the key levels, indicated above.
In the EOS daily 1-day chart, there is a bullish convergence and a rebound from the previous monthly low. If there is general positive in the cryptocurrency market, we can expect the price retracement up to Keltner channel’s moving average at about 8 USD.
The trendline analysis of EOS in hourly timeframes, a wedge is developing in the downtrend (the green triangle zone), whose breakout, according to classics, should be from below.
The EOS support levels are:
- June’s low;
- Point of control in the volume profile;
- the bottom border of Keltner channel in the weekly timeframe;
- April’s low.
All these lines, emerged in the same zone, make a very strong support zone that should stop the EOS downtrend (marked with the red box).
In the cryptocurrency markets, EOS is a high-quality asset, according to fundamental analysis
As the EOS ticker is close to the acute angle of the falling wedge and near the support zone, there is an opportunity for a massive bullish attack.
Bullish divergences and convergences support the idea of the EOS price growth in future.
Finally, according to the most likely scenario for the near future, the EOS ticker will move towards the wedge bottom borders at around 8 USD in the short term, and it may roll down to the support zone.
At this point, I suggest two scenarios that differ only in term of how deep the EOS price will drop.
In the first case, bears will hardly break through the zone top border at around 7 USD, after that, the ticker will move upwards beyond the wedge.
In the second case, the ticker will drop into the support zone and will wait buyers at about 5 – 7 USD.
The nearest targets are at 9.80 USD and 13.20 USD.
EOSUSD key levels for the next two weeks:
- 6.30 is highly likely to be reached by the price;
- 5.90 is likely to be reached;
- 5.10 can be reached;
- The price will hardly move lower than 5.10 USD
- 8.00 is highly likely to be reached
- 9.80 is likely to be reached;
- 13.20 might be reached;
- The price will hardly move above 13.20 USD
So, my EOSUSD forecast is complete.
I wish you good luck and good profits!
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