- EOS price climbed higher recently above the $3.850 and $4.00 resistances against the US Dollar.
- The price is currently correcting gains and declined below the $4.000 support area.
- There is a major bullish trend line forming with support near $3.850 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could decline further to test the $3.650 support area before it starts a fresh increase.
EOS price is currently correcting lower against the US Dollar and bitcoin. However, the bulls are likely to protect the $3.650 and $3.600 support levels in the near term.
EOS Price Analysis
Earlier this week, there was a strong rise in Ethereum, ripple, litecoin and EOS against the US Dollar, while bitcoin struggled to gain traction. EOS price climbed above the $3.850 resistance area to move into a positive zone. Moreover, there was a break above the $4.000 resistance and the 55 simple moving average (4-hours). Finally, the price spiked above the $4.200 level and recently the price started a downside correction.
There was a break below the $4.100 support and the 50% Fib retracement level of the upward move from the $3.645 low to $4.226 high. The recent decline was such that the price traded below the $4.000 support and the 55 simple moving average (4-hours). At the moment, the price is testing the $3.850 support area. Moreover, the 61.8% Fib retracement level of the upward move from the $3.645 low to $4.226 high is also near the $3.850 level.
More importantly, there is a major bullish trend line forming with support near $3.850 on the 4-hours chart of the EOS/USD pair. Therefore, it won’t be easy for the bears to push the price below the $3.850 support. If they succeed, the price could decline further towards the next key support near the $3.650 level. Any further losses might call for a test of the $3.500 support.
On the upside, an initial resistance is near the $3.950 and $4.000 levels. If there is a fresh increase above the $4.000 resistance, the price could start a strong rise towards the $4.200 level in the near term. The next key resistance levels are near $4.400 and $4.445.
Looking at the chart, EOS price is clearly approaching a couple of important supports near the $3.850 and $3.650 levels. If there is a downside break below the mentioned supports, the price may even resume its downtrend below $3.500. If not, it could bounce back above $4.000.
Technical indicators
Hourly MACD - The MACD for EOS/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) - The RSI is now well below the 50 level, with a bearish angle.
Major Support Levels - $3.850 and $3.650.
Major Resistance Levels - $4.000 and $4.200.
The post EOS Price Analysis: Downside Spike Before Renewed Uptrend appeared first on Live Bitcoin News.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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