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EOS could climb higher, but is there demand

2min Read

Over the past week, the market sentiment briefly shifted bullishly when the prices bounced to reach $0.64 on 29 August, but the prices slumped thereafter.

EOS could climb higher in search of liquidity, but does it have genuine demand?
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • EOS has a bearish market structure and was unable to break above $0.64.
  • A slow move higher to a Fibonacci retracement level before the continuation of the higher timeframe downtrend was a possibility.

EOS gained regulatory approval in Japan last week, which led to a surge of positive short-term sentiment in the market. Given that Japan has a strict financial regulatory framework, the network’s efforts to be compliant with its regulations boded well for long-term holders.


Is your portfolio green? Check the EOS Profit Calculator


The price chart saw a price jump on 29 August and 30 August, but from a technical standpoint, the structure did not favor the buyers. Even so, a bounce was possible.

The downtrend could begin anew after a move to these resistance levels

EOS could climb higher in search of liquidity, but does it have genuine demand?

Source: EOS/USDT on TradingView

While long-term investors could be in for a prolonged wait for a true bull run, traders could expect to see reasonable gains in the coming weeks. EOS was trading at $0.589, and its bounce in late August was unable to breach the local resistance at $0.644.

The Fibonacci retracement levels were plotted for the losses since July. They showed that the 50% and 61.8% Fibonacci retracement levels sat at $0.676 and $0.714 respectively. A retest the $0.714 would be ideal before another drop, and has occurred recently.

The rejection from $0.815 in mid-July was from the 61.8% retracement level of the previous drop. The RSI continued to show a downtrend in progress, while the OBV has not beaten the highs from July yet.

Order books showed substantial support at the $0.56-$0.58 region

EOS could climb higher in search of liquidity, but does it have genuine demand?

Source: MobChart

MobChart data showed plenty of limit buy orders just below where EOS was trading at. They amounted to close to $600k worth of buy orders, while a $287k sell wall sat at the $0.6 mark.

EOS could climb higher in search of liquidity, but does it have genuine demand?

Source: Coinglass


Realistic or not, here’s EOS market cap in BTC’s terms


Over the past week, the market sentiment shifted bullishly when the prices bounced to reach $0.64 on 29 August. The OI surged higher but retraced all those gains as the market slumped toward $0.58 again.

Aggressive swing traders can look to buy EOS around the $0.6 mark, with a tight stop-loss around the $0.55 level. The bullish target would be the $0.67 and $0.71 levels- but a bearish reversal was likely thereafter. Alternatively, a move below $0.55 could trigger losses as well.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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