- EOS/USD has been range-bound with bearish bias recently
- The critical long-term resistance is located at $4.20.
EOS has been pretty directionless lately. The 7th largest digital asset with the current market value of $2.7 billion is siting in a tight range, limited by $3.00 on the upside and $2.70 on the downside. EOS/USD has been unable ot move outside this channel since September 25.
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EOS/USD, the technical picture
EOS/USD recovery is limited by the psychological $3.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $3.40-$3.50 This resistance area is created by a combination of SMA50 (Simple Moving Average) and the middle line of the Bollinger Band on a daily chart. A sustainable move above this handle will negate a bearish scenario and allow for an extended recovery towards $4.00-$4.20. A SMA100 daily located in this area will serve as a real stress-test for EOS bulls. Back in September, this barrier stopped the recovery and triggered a new wave of sell-off.
On the downside, if $2.70 is broken, the sell-off may continue towards September 24 low at $2.40 and towards the lower line of a daily Bollinger Band at $2.30.