EOS has formed lower highs and higher lows thus creating a symmetrical triangle on its hourly chart. Currently, the price is testing support and might be due for a bounce back to the top. According to technical indicators, there are signs of a bearish exhaustion but the tighter consolidation suggests we brace for an EOS price breakout.
Unlike 2017, the rallies of most digital coins have been subdued. They may be forming a bottom which may go on for weeks or months. As such, during this period, the price will be volatile as the bulls and bears battle it out for supremacy. Hence, support and bad news may move up the price or cause a decline respectively.
News of many financial institutions planning to enter the cryptocurrency market has flooded the crypto space, but their effect is not being felt on the coin’s prices. The prices have continued to decline despite a positive prediction from several analysts. From the chart below, EOS’s consolidation resolved on the downside as its price broke down to the tight range. The bulls were trying to support the 50% retracement levels of the rally from $6 to $22.
EOS plans to launch its mainnet this coming month. So far, news of the project has received positive feedback from the top industry players with some major exchanges announcing their support. Earlier this month, they released the clean EOSIO Dawn 4.0 for testing on GitHub. This caught the attention of many developers thus raising the EOSIO to the top ten active projects on GitHub.
The EOS price breakout is likely to take place after the launch of mainnet on June. Buyers are seeking a breakout to attack $20.00 and revisit the new all-time high above $21.00. a breakout above the $17.00 may see the coin rally back above these levels.
How long do you think this bearish trend may take place?
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