EOS pulls back looking for support
During the trading session on Tuesday we have seen EOS pull back from the crucial $7.00 level, an area that obviously would attract a lot of attention. That being the case, you should also keep in mind that the other side of the equation here is the US dollar. Because of this, we should be paying attention to what the Federal Reserve says after the meeting on Wednesday, and therefore it’s very likely to see a lot of volatility in the US dollar.
We have been in and uptrend for some time, stretching back to at least May 10, and probably an argument could be made for the uptrend starting before that. Either way, you can see that have a nice uptrend line drawn on the chart and I think that a pullback from the $7.00 level shouldn’t be much of a huge surprise considering that it is a large come around, psychologically significant figure.
Beyond that, we have the red 50 day EMA just below the $6.00 level, which of course is something that the currency pair does tend to pay a lot of attention to. Underneath there, we have the 200 day EMA pictured in blue, so therefore I think between those two moving averages and the uptrend line, I think there is plenty of support to think that we will continue to go higher.
There is resistance above at the $8.00 level, and we did see a significant selloff from that level. Nonetheless, the resistance should also end up being a nice target. That being said, previously the $6.00 level previously has been resistance and is now supported. Overall, it looks as if the resistance above at the $8.00 level will need to be tested, especially considering what we are seeing in the other crypto markets.
The crypto markets have all been rallying as of late, and of course EOS is a going to be any different. The Bitcoin market has shown quite a bit of bullish pressure, and as a result it looks likely that the rest of the crypto currency coins will continue to shoot to the upside. Ultimately, it’s very likely that the dips will continue to be bought, because we are seeing that in other cryptos.
Remember, these markets all tend to move in the same direction over the longer-term as they are treated as the same asset. (Much like the stock market.) Because of this, you need to keep an eye on Bitcoin and Ethereum.
The play forward
The play forward of course is buying the dips, and I think the trend line just below at roughly $6.50 should offer enough of an opportunity for buyers to get involved, with support extending down to at least the $6.00 level under that. At this point, it should represent value the people will be more than willing to take advantage of, as EOS has been a bit of a laggard against some of the other crypto markets, but ultimately they are all going higher.