The EOS price, like several of its peers, has been reaping in the rewards of upside, following the recent bottom around the $5.0000 mark. EOS/USD over the past eight sessions has seen double digit gains, jumping as much as 13%. Given a recent breakout from a vital area of resistance, a decent pick up in momentum could be seen from the bull camp.
Recent Technical Developments
EOS/USD price action had formed a large bearish pattern, which if playing out to the textbook could have been a nail in the coffin. Fortunately, in favor of the bulls, a firm breach above the pennant has been seen. A daily break and closure above were observed on 4th November, which has allowed more room for greater upside.
The price had been moving within the above-mentioned technical pattern since 1st September. EOS/USD has been subject to a falling and narrowing price. This had held for over nine weeks of trading. Due to the prolonged period of containment, it means the fire power behind the move north could be quite some force.
The next major challenge for the bulls will likely be to tackle the $6.0000 mark. EOS/USD last traded here very briefly on 15th October. Resistance can be viewed at the 38.2% Fibonacci area, which tracks just above $6.0000. Bulls have been rejected here on several occasions, running from mid-September. Further north, next target would be the 1st September high at 50% Fibonacci.
As previously demonstrated, during the bull run in December 2017 and April of this year, a double-digit price can be seen very quickly. Looking historically, a breakdown of $6.0000, with enough momentum, could observe a brisk run towards $10.0000 and beyond. EOS/USD has not up at those heights since June.
It is worth keeping the breached pennant pattern in view, in case of a potential pullback. This would be inline with the textbook, seeing a breakout and retest, ahead of any further committed move north. Above the pennant would see the support at $5.3000, should any pullback be observed. A move such as described, could further encourage upside pressure from the bulls.
Should the upper part of the pennant fail to hold, eyes will then be on $5.0500. This is a bottom area seen between 11-12 and 30-31 October, also in proximity to the lower trend line of the mentioned pattern. Any failure to find comfort here, could see a fast move back down towards the mid to low $4.0000 price region.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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