|Key EOS resistance levels:||$3.6, $3.8, $4|
|Key EOS support levels:||$3.4, $3.2, $3|
*Price at the time of writing
On an intraday chart, EOS/USD pair has given an average price performance. The trend was sideways since the horizontal channels that also acted as the price fundamental support level and resistance level reflected it. The market dropped from where it closed yesterday at $3.6099 to bring the current price down to $3.5225. In terms of total circulating supply, only 1.02 billion EOS were sell-off over the last 24hrs.
How to buy EOS on Binance
The dip in EOS/USD price was buttressed with almost all the indicators where currently the 21 day MA is gravitating above the 7 day MA that signals a strong bearish outlook. The Relative Strength Index indicator was also seen hovering most of the time between level 40 and 60 that indicated a lack of dominance in the market momentum.
Notably, the market is most likely bearish; however, for sellers to continue dominating the momentum in the short term a breakout beneath $3.5036 support level may be needed. If EOS price manages to dip, then critical support below 3.0000 is likely to be seen.
Apparently, the price of EOS could only manage to trade between $3.06099 and $3.5036 level, with both levels were also tested severally. According to analysts, the EOS price has been showing a similar pattern for some time. However, it is believed that a breakout or a breakdown might be encountered before the end of the week. Furthermore, the parabolic SAR indicator is now below the price action that indicates a buy signal.
If the bulls manage to take over the momentum and defend the support zone, then initial resistance may be improved from $3.6099 to $3.8000 and $4.000. However, the RSI indicator is currently heading south and is below level 50 that means sellers are in total control. This also signals an increase in sellouts. Additionally, sellers could lose market control only when the RSI indicator is seen above level 50. If the bulls up their strategy, the 7 day MA could cross the 21 day MA, which is a positive sign for investors.
The decline of EOS price may perhaps be due to the inability of Bitcoin to recover back to $13,000 level. This is since all altcoins price actions are based on their Bitcoin exchange rate. Apparently, one of the major reasons behind cryptocurrency succumbing to selling pressure is the Ponzi scheme. According to Dovey Wan, the ongoing sell-offs is made by the PLUS Token. The Chinese Ponzi scheme that has so far scammed over 200,000 Bitcoin and 800,000 Ethereum that may cause a further crash in the crypto market.
The CME gap might be another major reason; Bitcoin traders also cite the existence of the gap as one of the reasons behind the drop of Bitcoin price lately. The gap is because of the price movement of Bitcoin over the weekend. With the CME future closed and space donates the difference between the new opening price and the previous closing price as soon as the market opens.
Investors believe that Bitcoin should revisit this $8,500 to $7,100 range to truly correct before resuming its bullish momentum.