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Could EOS be headed beneath $1.9 once again? Yes, only if…

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EOS could be set to plumb new depths if the bulls can't defend this area

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

EOS has been on a downtrend since November. And, in the past couple of weeks, it saw yet another wave downward from $2.5 to $1.86. At the time of writing the price had retraced much of this downward move and looked to be gearing up for its next leg downward. On-chain metrics also showed that EOS was a long way away from market leaders as it had a 24-hour transaction volume of $11.5 million the previous day, compared to Ethereum’s $6.97 billion for the same time period.

EOS- 2H

EOS could be set to plumb new depths if the bulls can't defend this area

Source: EOS/USDT on TradingView

The move from $2.58 to $1.86 was used to plot a set of Fibonacci retracement levels (yellow). The 61.8% retracement level for this move lay at $2.3, and in the past couple of days, EOS faced rejection at this level.

The VPVR tool showed that the Point of Control (POC) lay at $2.197, and represented a significant level. The price has fallen below this level as well and was trading at $2.095. The Value Area Low was at $2.05, while the $2.095 area marked a relatively high-volume node on the VPVR.

Hence, a move below $2.09 could herald further downside for EOS. The next levels of support lie at $2.09, $2.03, and $1.91.

Rationale

EOS could be set to plumb new depths if the bulls can't defend this area

Source: EOS/USDT on TradingView

The RSI fell below neutral 50 and was below 40 as well, which denoted strong bearish momentum. The CVD indicator also showed that selling volume outweighed the buying volume over the past couple of days. This selling pressure could sustain and drive prices lower.

The Directional Movement Index showed a strong bearish trend in progress with both the ADX and the -DI (red and yellow respectively) well above the 20 value.

Conclusion

The charts showed that EOS was on the verge of losing the VAL of the past three weeks. It has also been rejected at a crucial 61.8% retracement level which highlighted that EOS could be headed beneath $1.9 once again. The selling pressure has had the upper hand in the past few days, and bearish momentum has been rising as well. A move below $2.09-$2.03 could see EOS go to $1.91 in the next few hours or a couple of days.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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