EOS setting up for a bigger move
EOS, which of course is one of the smaller crypto currency is that we follow, has been relatively quiet as of late. However, we are setting up to test the couple of potential lines of support and resistance that could determine where we go next. Beyond that, we are right around a large, round, psychologically significant figure, so that of course will come into play as well.
The $4.00 level of course will attract a certain amount of attention simply because it is a whole number. Over the last couple of weeks, we have bounced around this area and now are starting to form a bit of an uptrend line. That uptrend line of course will attract a lot of attention. Ultimately, this is a market that is trying to figure out where to go next. As you can see on the chart, I have an ascending triangle drawn out.
That being said, you can also make out a bit of a bearish flag if you look closely. In other words, this is an area that will more than likely attract a lot of attention in both directions. Overall, this is a market that does suggest that we are going to make a move though, and therefore it makes EOS something worth paying attention to.
Beyond all of that, we are currently dancing around the 61.8% Fibonacci retracement level, which will attract a certain amount of attention by itself. Quite frankly, we are about to make a move one way or the other, and it should be a rather large one.
The moving averages that I follow are marked on the chart with the red being the 50 day EMA and blue being the 200 day EMA. We have done the so-called “death cross” recently, which is when the 50 day EMA breaks below the 200 day EMA. That being said, the sellers will of course be paying quite a bit of attention. It’s because of this that we can’t rule out the breakdown could be coming.
The play going forward
The trade going forward will present itself if you are willing to wait for it to show up. You should not be trying to anticipate things right now, but rather wait for the market to tell you which direction it wants to go. Once it does, then you just simply follow. This is a market that will of course be heavily influenced by cryptocurrency in general, with a particular emphasis on Bitcoin as it tends to lead the entire cryptocurrency world anyway. Ultimately, this is a market that continues to see inertia brought into it, and therefore once we either break above the top of the triangle, or break down below the $4 level, then we can start to put serious money to work when it comes to the EOS market. Keep an eye on this chart, we are about to move rather significantly. If we break to the upside, we will more than likely go looking as high as $6. If we break down below here, then the market is likely to go to the $3 level.