EOS could reach double digits soon: Can we easily break $7 resistance?

17 May, 2019
by Lourens Pepler
Price Analysis
EOS could reach double digits soon: Can we easily break $7 resistance?

The altcoin market is looking healthy after a nice green day across the board, with most alts now retracing and finding support. EOS is currently resting on major support near $6. What does EOS have in store for us?

Highlights:

- Double digits EOS on the way?

- EOS finding support

- Need to break $7 resistance

Diving straight into the 3h chart we see that EOS is resting on its higher timeframe support of $6. This is also local support since $6 is the highs from April. Looking at our momentum indicators, the RSI and Stoch RSI shows us that this downwards move might be nearing its end.

RSI is above 40 sitting at a value of 46, which indicates we are are still bullish. We also have Stoch RSI confirming that we are nearing the floor of this retracement with it trading below the 20 line. It's very much possible that we rest here for a day before it continues to move higher. And once we clear the $7 resistance zone is when we can expect EOS to move to double digits.

EOS/USD chart provided by Tradingview

Daily outlook
Over at the daily chart we get a better view of the bigger picture. We notice that EOS has already broken past the 200EMA and made it's way back to it to declare $4.5 as support. Since we made another push away from the 200EMA and broke the next resistance at $6 shows us that the chart is bullish. With EOS now finding support on the lower time frames we should definitely keep an eye on it.

EOS/USD chart provided by Tradingview

EOS finding support


Lastly, if we look at the hourly chart we get a clearer picture of current movements. EOS has found support at the 200EMA which is also our $6 support zone, confirming that we have support here. Looking at RSI we see that it's briefly visiting below the 50 line. Usually when RSI is below 50 is when we see downwards movement, but in this case, it's a bit different.

Since RSI has mostly been holding above 50 this past few days we can assume that the norm is currently for the price to move up. We notice that RSI suddenly moved below 50 and made its way to the 30 line, showing us that the current price action is out of the norm, and that we should return to the norm anytime soon. As soon as RSI pushes back above 50 is when we can expect to see new local highs as we make our way to $10.

EOS/USD chart provided by Tradingview

Crypto is thriving again with most coins already providing large % gains. While we wait for Bitcoin to find support, we will continue to look at alts for possible moves. EOS seems to be an interesting choice, can we break $7 and run for double digits? Let us know your thoughts in the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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