Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The cryptocurrency market is surging once again, with Bitcoin, the world’s largest crypto, leading the rally. With the leader of altcoins, Ethereum [ETH] registering a new all-time high as well, the momentum is high among other alts. With a market capitalization of $7.14 billion, EOS was being traded at $7.51 at press time.
EOS hourly chart
Source: EOSUSD on TradingView
According to EOS’s hourly chart, the digital asset registered a strong surge in value on 13 April. Its price hiked from $6.41 to $8.12 within a day, which was a rise of nearly 26%.
However, this upsurge was followed by a correction that pushed the price to its various levels of support. Soon after, the alt bounced back from $7.16. After the price pushed past its immediate resistance, EOS, at press time, was trying to hold on to the $7.47-level.
Reasoning
After the aforementioned surge in price, the volatility had fallen across the EOS market. This was indicated by the convergence of the Bollinger Bands and as the price took a dip under the support level, the market turned bearish. The Signal line was also trying to move over the candles, at press time. On the contrary, the 50 moving average was also pushing higher above the price bars, underlining that the correction may have given way to bears to step in.
Meanwhile, the market had reached an equilibrium stage. This was indicated by the Relative Strength Index which remained at 50, suggesting that the buying and the selling pressures had evened out. EOS’s price may continue to move along this price level as the trading pressures had evened and the momentum was reduced to zero.
Conclusion
EOS, at press time, was catching a break from the surging market. The price of the digital asset has been corrected and the alt bounced back to the $7.4-price range. The traders may continue to maintain this price of the digital asset, however, if it slips under the $7.47-support, it may once again drop to the $7.16-level.
