Cryptocurrency

EOS: Recent breakout could mean this for long term holders

The current bullish crossover on the 20 EMA (crimson) and the 50 EMA (cyan) got here to fruition after EOS’s side-channel (yellow) breakout. The resultant development entailed a place above the near-term EMAs. But the 200 EMA (inexperienced) evoked the promoting strain and some crimson candlesticks.

The current bearish pull under could assist the sellers inflict a near-term decline earlier than a possible bullish resurgence. At press time, EOS traded at $1.689.

EOS Daily Chart

Source: TradingView, EOS/USDT

EOS noticed a rectangle backside (white) breakdown that rekindled the bearish inclinations. Meanwhile, the 20 EMA suppressed the shopping for efforts for practically three months till mid-July.

After a month-long low volatility section, the side-channel breakout laid the muse for the alt’s ongoing bull run. Also, the 20/50 EMA lastly appeared north. The current bullish crossover has bolstered the potential of the EMAs flipping to a help stage.

The present reversal from the 200 EMA could discover rebounding grounds from the $1.4-$1.5 vary. A probable U-turn from this vary would place the coin for a continued upside. In this case, the consumers should look for a potential retest of the $1.9-$2.1 vary within the coming days.

Rationale

EOS Recent breakout could mean this for long term holders

Source: TradingView, EOS/USDT

The Relative Strength Index (RSI) marked a stable restoration towards its overbought area. But the present reversal could ease the near-term shopping for strain.

On the opposite hand, the Chaikin Money Flow (CMF) exhibited a slight shopping for choice by sustaining a place above the zero mark. The merchants ought to look for a possible decline under the equilibrium to gauge the probabilities of a bullish invalidation. Also, the Moving Average Convergence Divergence (MACD) strains continued to show a bullish benefit within the present construction.

Conclusion

The present reversal from the 200 EMA resistance could discover rebounding alternatives from EOS’s near-term EMAs. With the symptoms affirming a bullish bias, consumers could purpose to expedite their edge.

Traders/traders ought to preserve an eye fixed out for the breach of essential thresholds on the CMF earlier than putting calls. The potential targets would stay the identical as mentioned. Finally, holding a watch on the king coin’s motion could assist make a worthwhile guess.

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