EOS / USD Technical Analysis: Bulls Taking Control
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- EOS is bullish in the short-term, with the cryptocurrency advancing to a fresh monthly trading high
- The four-hour time frame also shows that a bearish head and shoulders pattern still remains valid
- The EOS / USD pair’s medium-term outlook is bullish, with the cryptocurrency breaking out from an ascending triangle pattern
EOS / USD Short-term price analysis
EOS is bullish in the short-term, with the cryptocurrency moving to a fresh monthly price high and trading to its highest level since February 24th this year.
A head and shoulders pattern is still visible on the four-hour time frame, with bulls currently working hard to invalidate the bearish pattern.
Technical indicators on the four-hour time frame have turned bullish and continue to signal further short-term gains ahead.
EOS / USD H4 Chart (Source: TradingView)
Pattern Watch
Traders should note that if the bearish head and shoulders pattern is invalidated, then an inverted head and shoulders pattern will start to take shape.
Relative Strength Index
The RSI indicator is also bullish on the four-hour time frame, although the indicator has moved into overbought territory.
MACD Indicator
The MACD indicator on the four-hour time frame is bullish and is currently generating a strong buy signal.
Fundamental Analysis
The uptrend movement followed two positive announcements made this week. Weiss Ratings put EOS, XRP, and BTC at the top, with an “A” grade, considering the projects’ technology and adoption. Also, Dan Larimer, the founder of EOS, teased the community in Telegram writing that “June will be biggest news since eosio announcement.” This should stir up the interest in the project.
EOS / USD Medium-term price analysis
EOS has a bullish trading bias over the medium-term, with the cryptocurrency trading above its key 200-day moving average for the first time since February 24th this year.
Buyers have also performed a bullish breakout from an ascending triangle pattern on the daily time frame, which is likely to signal a potential technical test towards the current yearly trading high.
The November 7th, 2018 trading high currently offers the strongest form of technical resistance if bulls can move price above the current yearly trading high.
EOS / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that a large inverted head and shoulders pattern will start to take shape if bulls can advance the EOS/USD pair towards the November 7th trading high.
Relative Strength Index
The Relative Strength Index is bullish on the daily time frame and is generating a strong buy signal.
MACD Indicator
The MACD indicator on the daily time frame is neutral and has yet to generate a bullish trading signal.
Fundamental Analysis
In the medium term, EOS also appears fundamentally strong. It has been highly ranked by Weiss Rating and by the Chinese Government Agency (CCID). In addition, its network is among the most active, with the largest number of on-chain transactions, ahead of both Bitcoin and Ethereum.
Conclusion
After coming under slight downward pressure, EOS bulls appear to be taking back control of the fifth largest cryptocurrency.
If the head and shoulders pattern can be invalidated on the four-hour time frame, the EOS / USD pair could start to rally towards the price peaks of November 2018.
For an introductory course on the project check out our coin guide for EOS here.
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