EOS: A fall below this level will open up shorting opportunities
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The month of July has been rough for most altcoins so far. While the first week of the month did instill hopes of wider crypto-recovery, the following days saw a surge in selling pressure across the board. EOS, like most of its counterparts, saw a decline in value but low volatility kept its losses in check.
At the time of writing, EOS was being traded at $3.67, down by a marginal 0.26% over the last 24 hours.
EOS Daily Chart
The period between the end of June and early July was favorable for the global cryptocurrency market and bullish sentiment allowed EOS to hike above its 22 June swing low of $3.066. However, its gains were limited to the 23.6% Fibonacci Extension at $4.15 despite multiple attempts at an upwards breakout.
The most recent failed breakout attempt saw EOS move below its 20-SMA (red) and shift towards the support line of $3.58. The price can be expected to trade above this defensive level till a more definitive trend emerges across the broader market. In case of another downturn, EOS could shift back to $3.06 whereas a bullish outcome would push the price towards $4.5 and the 50-SMA (yellow).
The MACD reflected neutrality as the fast-moving line remained in close proximity to the Signal line, although its histogram noted a decline in bullish momentum over the past few days.
The Directional Movement Index’s -DI moved above the +DI and pointed to a bearish trend. However, an ADX reading of 19 meant that the trend was weakening. The Relative Strength Index remained in bearish-neutral territory, but a move below 35 would denote rising downwards pressure.
EOS looked likely to trade sideways and above $3.58 over the coming days until a more definitive direction emerges across the broader market. If sellers take control, the price could reset at its 22 June swing low of $3.066. Meanwhile, traders can opt to short EOS if the price falls below $3.58.
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