EOS Price Analysis: Overwhelmingly Bearish Mid-Term
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- EOS is teetering on the neckline of a bearish head and shoulders pattern in the short-term
- The popular crypto has managed only a tepid price recovery since December’s major cryptocurrency market sell-off
- The medium-term picture appears particularly bleak for the EOSUSD pair
EOS / USD Short-term price analysis
In the short-term, the EOSUSD pair is bearish, with price currently trading around the neckline of a bearish head and shoulders pattern. Since the start of 2019 buyers have repeatedly struggled with the $3.0000 level.
A break below the current 2019 trading low and the EOSUSD pair could easily begin a move towards the $2.0000 level.
Pattern Watch
The bearish head and shoulders pattern and the repeated technical failures around the $3.0000 level really highlight the bearish short-term case for the EOSUSD pair.
A clear break below the head and shoulders neckline on increasing trading volumes may be the best way to trade the pair to the downside in the short-term.
(Source: TradingView)
MACD
The MACD indicator is currently inconclusive as the MACD histogram is correcting towards neutral levels, while price remains relatively subdued.
EOS / USD Medium-term price analysis
In the medium-term the outlook for the EOSUSD pair is overwhelmingly bearish.
The real standout on the daily time frame chart is large head and shoulders pattern hovering ominously over the fifth largest cryptocurrency. Price has been trading below the neckline of the bearish pattern since November, and since this occurrence, the pair has shed over half of its market capitalization.
EOSUSD is currently trading close to its 50-day moving average on relatively depressed volumes. Aside from minor corrective moves higher or a dramatic shift in sentiment towards cryptocurrencies, the pair is like to stay in a bear market.
(Source: TradingView)
Pattern Watch
Aside from the obvious bearish head and shoulders pattern, the recent decline in the EOSUSD pair has yet to reach the December 2018 trading low. Failure to break the December would create a temporary triple-bottom pattern formation and encourage an upside rally.
Moving Averages + RSI
Price is trading close to the 50-day, which is a key gauge of near-term sentiment. Like many other cryptocurrencies, a bearish MA crossover is currently apparent, giving bulls few reasons to buy the pair at present.
Volume has been gradually declining over the course of this month, it is also clear that selling volume has been outstripping buying volume.
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