EOS’s downward move beneath the $3.6 level empowered sellers to drag the alternative token below the $1 value area. It struggled to secure a spot beyond the short-term Exponential Moving Averages until recently.
EOS printed two rectangles during the period while recording new lows on the price chart. The latest bullish break beyond the Exponential Moving Averages might bolster buyers to extend their spree in the upcoming sessions. While publishing this blog, EOS changed hands at $1.23, gaining 7.7% within the past 24 hours.
EOS Daily Timeframe
The 20 Exponential Moving Average restricted buying efforts for about three months. EOS witnessed a rectangle bottom breach as selling momentum began to surge in mid-June. That welcomed bearish inclinations for the alternative token.
As the POC (Point of Control) stayed around the $0.92 mark, the alternative token ended the selling period and entered low volatility during the previous month. Also, the 20 Exponential Moving Average eventually refused to go south. Bullish crossovers on the short-term Exponential Moving Averages would confirm the short-term revival chances.
EOS’ price action might reverse from $1.2 in the upcoming sessions. Nevertheless, a resurgence beyond its Exponential Moving Averages might bolster buyers to maintain their edge.
Such a development would see rebounds targeting the $1.4 test before a significant fallout. Bullish invalidations might witness a relatively sluggish period beyond the Point of Control.
Reasoning
The RSI (Relative Strength Index) witnessed a decisive recovery while approaching the overbought territory. Reversals from this area might hinder buying efforts in the near term. The Chaikin Money Flow exhibited a massive buying preference on the daily chart.
However, its latest lower highs have catalyzed a bearish divergence with EOS price. A potential sluggish period before enormous recoveries appeared possible. However, the ADX still displayed a somewhat weak directional bias.
Final Thought
EOS might witness short-term upticks as its indicators exhibited a brief bullish bias. However, threats from the overbought Relative Strength Index and Chaikin Money Flow’s bearish divergence could delay this revival.
The possible targets would stay as discussed above. Nevertheless, analysts should watch BTC and broad market sentiments for profitable actions.
Stay tuned for upcoming crypto news.