A simple glance at EOS shows that bulls are in charge which is pretty much impressive considering the cataclysmic collapse of other crypto-pairs like LTC. While we should be cheering on and probably admiring the product powering this token, we should take a quick look at price action and especially how last week closed.
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In my opinion, I really think that the currency is a tad bit over-extended but I’m not going to recommend shorts until after that is confirmed. There is no other way of that being done other than this week’s price action. Will the long lower wick-read buy pressure, push prices higher against our expectations? It may and looks like it anyway.
It looks the part especially with the bull candlestick that’s already in place. The only way for EOS bulls to assert their presence is to maintain prices above the 2nd Fibonacci extension line in the coming sessions with immediate targets at $18.
Like most currency pairs, there is a very direct relationship between price action and the middle BB. We know it a measure of volatility and a flexible support in our case. Considering recent set up in the daily chart, will bears confirm January 14, 2018 double tops? That’s very much depends on what happens today and tomorrow.
Already we have buyers bouncing off from the middle BB as visible from yesterday’s bullish candlestick and the subsequent confirmation today. January 21 highs is where we should be keeping our eyes on as any close above that might open doors for close above January 14 highs.
We shall use the Fibonacci retracement tool to hand pick various potential reversal points. From it, we can see that prices are off the 38.2% correction level with last week’s highs acting as our immediate ceiling.
Besides that, EOS price action is in a minor consolidation and I will recommend small position longs with targets at $18.