EOS selloff might be ending as price approaching the demand zone
Updated
Yesterday EOS has been trading near $5.4, where it formed the support. But today it has experienced a fast decline, and throughout the day lost over 7%. EOS/USD reached $5.05 low today and after small retracement is trading at $5.15.
It seems that after the fast price drop, there won’t be a fast recovery, especially after price broke below the descending channel. Usually it takes time for price to confirm the bottom, consolidate and only then establish reverse. As trend is bearish, the probability that price will drop even further remains high. At this stage it is very risky to go against the trend and start buying EOS.
The nearest support is seen at $5.00. This is a very strong physiological support, confirmed by the 78.6% Fibonacci retracement level. If that support is broken, EOS/USD might drop down to 88.6% Fibs at $4.84. Therefore, another 3% or 6% decline can be expected in the near future.
Technically, price is trending down, although unexpected trend reversal might also take place. While the nearest resistance area is between $5.04 - $5.46, EOS must break above $ 5.5 with confidence. Such price action would indicate bullish intentions of the EOS, which obviously could trigger accumulation of buy orders.
In short, trend is bearish and is expected to go down more. Only break above the resistance might indicate otherwise.
It seems that after the fast price drop, there won’t be a fast recovery, especially after price broke below the descending channel. Usually it takes time for price to confirm the bottom, consolidate and only then establish reverse. As trend is bearish, the probability that price will drop even further remains high. At this stage it is very risky to go against the trend and start buying EOS.
The nearest support is seen at $5.00. This is a very strong physiological support, confirmed by the 78.6% Fibonacci retracement level. If that support is broken, EOS/USD might drop down to 88.6% Fibs at $4.84. Therefore, another 3% or 6% decline can be expected in the near future.
Technically, price is trending down, although unexpected trend reversal might also take place. While the nearest resistance area is between $5.04 - $5.46, EOS must break above $ 5.5 with confidence. Such price action would indicate bullish intentions of the EOS, which obviously could trigger accumulation of buy orders.
In short, trend is bearish and is expected to go down more. Only break above the resistance might indicate otherwise.
Note
Note
Note
Trade closed: target reached
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