EOS is a major contender of Ethereum due to its high scalability and extremely fast block confirmation time. The price of EOS token has declined from its all-time high at $23 USD to about $2.9 USD at the current moment. Price action shows an ongoing short-term rally.
EOS gives a good profit-making opportunity. EOS token found good support on the long-term price of $2 USD, which is a great sign. The current relief rally can push the price to the next resistance seen at $4 USD- $4.5 USD in coming weeks. (Chart 1)
As we see in the chart above, there has been a surge in the buying volume even though the price is approaching resistance at the trend line. For bulls to sustain, the price must break above this trend line.
The price has broken above the 20 SMA on the daily chart and for bulls to remain in control in coming days, we should see the price trading above the 50 SMA on the 1 D chart as shown in the chart above.
A great long-term indicator that suggests that EOS has better days to come is Accumulation/Distribution. Accumulation of EOS tokens has been constantly rising despite the decline in prices. In fact, in the last six months, there has been an inverse correlation between price decline and accumulation.
Traders waiting to get in may wait till price retraces to about 0.38 Fibonacci ratio, which is around $2.5-$2.7 USD price range.
In terms of the risk-reward ratio, it is certainly a good setup. Traders can aim at a price target at $4.5 USD on their trade with a stop loss around $2.4 USD.
Verdict: Cautiously Bullish
Recent News: China’s Center for Information and Industry Development (CCID), under the Country’s Ministry of Industry and Information Technology, recently published its Global Public Blockchain Technology Assessment Index (GPBTAI) and rated EOS as the best public blockchain. This is a great news and has driven the token price higher.
By Vishal Chawla
Disclaimer by the Author:
This is not an investment advice or promotion to ICO or Cryptocurrencies or any other investment in any form. These views are based on Author’s own research and readers must execute caution & suggested to do their own research during any investments.