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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- EOS has a bearish market structure and failed to break above USD 0.64.
- A slow move higher to a Fibonacci retracement level before continuing the downtrend into a higher time frame was a possibility.
EOS received regulatory approval in Japan last week, sparking a wave of positive short-term sentiment in the market. Given that Japan has a strict financial regulatory framework, the network’s efforts to comply with regulations boded well for long-term holders.
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The price chart saw a price increase on August 29 and August 30, but from a technical point of view, the structure was not in favor of the buyers. Still, a leap was possible.
The downtrend could start again after a move towards these resistance levels
Source: EOS/USDT on TradingView
While long-term investors can wait a long time for a real bull run, traders can expect reasonable gains in the coming weeks. EOS was trading at $0.589, and the late-August rebound failed to break the local resistance at $0.644.
The Fibonacci retracement levels are plotted for the losses since July. They showed that the 50% and 61.8% Fibonacci retracement levels were at $0.676 and $0.714, respectively. A retest of USD 0.714 would be ideal before another decline, and it happened recently.
The rejection of $0.815 in mid-July came from the 61.8% retracement level of the previous decline. The RSI continued to trend downwards, while the OBV has yet to beat its July highs.
Order books showed substantial support in the $0.56-$0.58 region
Source: MobChart
MobChart data showed a lot of limit buy orders just below where EOS was trading. They amounted to nearly $600,000 in buy orders, while a $287,000 sell wall stood at the $0.6 mark.
Source: Mint glass
Realistic or not, here is the market cap of EOS in terms of BTC
Over the past week, market sentiment turned bullish as prices rebounded, hitting $0.64 on Aug. 29. The OI rallied higher, but regained all of these gains as the market fell back to $0.58.
Aggressive swing traders can buy EOS around $0.6, with a tight stop-loss around $0.55. The bullish target would be the USD 0.67 and USD 0.71 levels, but a bearish reversal was likely after that. Alternatively, a move below USD 0.55 could also lead to losses.